SAN JOSE, Calif., Oct. 18, 2021 /PRNewswire/ -- Flex (NASDAQ:
FLEX) announced today it has entered into a definitive agreement to
acquire Anord Mardix, a global leader in critical power solutions,
from private equity firm Bertram Capital. The acquisition adds to
Flex's portfolio of Power products and expands its offering in the
data center market. The $540 million
all-cash transaction has been unanimously approved by Flex's Board
of Directors and is expected to close in the fourth quarter of
calendar 2021, subject to customary closing conditions, including
regulatory approval.
Anord Mardix was established in 2018 as a result of
a business combination between Anord Control Systems and
Mardix, each with over 50 years of engineering experience. Anord
Mardix offers an extensive product portfolio of critical power
solutions including switchgear, busway, power distribution and
modular power systems, along with monitoring solutions and
services. This portfolio combined with Flex's embedded power,
server and storage products, racks and enclosures and full systems
assembly capability will accelerate the company's growth in the
data center market. Anord Mardix will also leverage Flex's global
footprint and supply chain to establish itself as a trusted
provider of quality products at scale across all major regions.
"This acquisition builds on Flex's previously articulated
strategy to move toward higher margin opportunities in faster
growing verticals in our Reliability business," said Revathi
Advaithi, Chief Executive Officer of Flex. "With Anord Mardix,
Flex's business will be better positioned to capture rising global
demand for data center power solutions."
"Anord Mardix primarily markets critical power directly to data
center operators. By joining Flex, we will be able to build out
Anord Mardix's comprehensive range of end-to-end power systems for
critical data facilities, leveraging Flex's expertise and
efficiencies in advanced manufacturing and global supply chain. We
look forward to being a part of Flex and expanding our abilities to
provide quality data center solutions to our customers," said
James Peacock, who will be Managing
Director, of Anord Mardix.
As a widely trusted partner serving a diverse, global customer
base, Flex's global scale and key relationships with industry
leaders will benefit Anord Mardix as they work to expand into the
U.S. and Asian markets, with key hyperscale and colocation
partners. Together, the combined offerings provide a broad
opportunity for strategic growth and for Flex to further penetrate
a $10 billion addressable market,
that is expected to grow at an approximately 9% CAGR through
2026.
Anord Mardix is on track to generate approximately $360 million in revenue in calendar 2021 and is
well positioned for continued growth in the coming years. Flex
expects the Anord Mardix transaction to be accretive to adjusted
EPS and to deliver mid-teens EBITDA margins in fiscal year 2023,
which begins April 1, 2022. For
reporting purposes, Anord Mardix will be included in the Industrial
business unit inside Flex's Reliability Solutions segment.
Flex management will further discuss the acquisition on its
upcoming earnings call on Wednesday, October
27th, 2021 at 1:30 p.m.
Pacific Time (4:30 p.m. Eastern
Time).
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of U.S. securities laws, including statements related
to our planned acquisition of Anord Mardix, the expected timing for
the closing of the acquisition, expected benefits of the
acquisition and Anord Mardix's expected impact on our financial
results. These forward-looking statements involve risks and
uncertainties that could cause the actual results to differ
materially from those anticipated by these forward-looking
statements. Readers are cautioned not to place undue reliance on
these forward-looking statements. These risks include: the
possibility that regulatory and other approvals and conditions to
the acquisition are not received or satisfied on a timely basis or
at all; the possibility that we may not fully realize the projected
benefits of the acquisition; the possibility that Anord Mardix's
revenue may not meet expectations; changes in the anticipated
timing for closing the acquisition; business disruption during the
pendency of or following the acquisition; diversion of management
time on acquisition-related issues; the reaction of customers and
other persons to the acquisition; and other events that could
adversely impact the completion of the acquisition or the expected
benefits of the acquisition, including the ongoing COVID-19
pandemic and other industry or economic conditions outside of our
control. In addition, actual results are subject to other
risks and uncertainties that relate more broadly to our overall
business, including those more fully described in our filings with
the Securities and Exchange Commission, including our annual report
on Form 10-K for the fiscal year ended March
31, 2021 and subsequent quarterly reports on Form
10-Q. The forward-looking statements in this press release
are based on current expectations and Flex assumes no obligation to
update these forward-looking statements.
About Flex
Flex (Reg. No. 199002645H) is the manufacturing partner of
choice that helps a diverse customer base design and build products
that improve the world. Through the collective strength of a global
workforce across 30 countries and responsible, sustainable
operations, Flex delivers technology innovation, supply chain, and
manufacturing solutions to diverse industries and end markets.
About Anord Mardix
Anord Mardix is a global leader in critical power distribution
and protection with operations in North
America, EMEA and Asia
Pacific. It produces an end-to-end product range including
switchgear, custom built modular, and flexible data hall busway
distribution solutions, serving the global data center and cloud
computing industries—from independent providers to hyper-scale
leaders. Visit www.anordmardix.com for further information.
Investors & Analysts
David
Rubin
Vice President, Investor Relations
David.Rubin@flex.com
Media & Press
Mark
Plungy
Director, Corporate Integrated Communications
(408) 442-1691
Mark.Plungy@flex.com
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SOURCE Flex