Flex’s Crown Technical Systems acquisition deepens its data center power market presence

Flex reached a deal to acquire Crown Technical Systems, a provider of fully integrated power distribution and protection systems, for $325 million in an all-cash transaction. The company expects the acquisition deal to be accretive in the first year after it closes.

Crown Technical Systems brings nearly 30 years of solving the most pressing power distribution and control challenges. It has extensive capabilities in modular solutions, medium-voltage switchgear, control, and relay products.

The company also has a diverse set of long-standing customers spanning utilities, data centers, and power generation, with facilities in California, Texas, and Canada.

Flex said the acquisition will increase its exposure to fast-growing, margin-accretive end markets, including modular data center adoption and medium-voltage power distribution.

Also, the acquisition extends Flex's power portfolio into the utility power market, supported by long-term trends in grid modernization and energy generation growth. At the same time, the acquisition strengthens Flex's critical power portfolio and accelerates its growth in the U.S. data center market.

Crown Technical Systems is expected to generate revenue of approximately $120 million and high-teens EBITDA margin in fiscal 2025, which ends on March 31, 2025. After meeting customary closing conditions, including regulatory approval, the company said it expects to close the acquisition transaction no later than December 2024.

"The addition of Crown Technical Systems strengthens our position to help customers solve power, heat, and scale challenges in the data center space, which is aligned with our long-term growth strategy," said Revathi Advaithi, CEO of Flex.

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