Why Flex Is Buying Anord Mardix For $540 Million In Cash

By Annie Baker ● Oct 18, 2021
  • Flex (NASDAQ: FLEX) announced it has entered into a definitive agreement to buy Anord Mardix for $540 million. This is why.

Flex (NASDAQ: FLEX) announced it has entered into a definitive agreement to acquire Anord Mardix – which is a global leader in critical power solutions – from private equity firm Bertram Capital. This deal adds to Flex’s portfolio of Power products and expands its offering in the data center market. And 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 launched in 2018 as a result of a business combination between Anord Control Systems and Mardix, each with over 50 years of engineering experience. And Anord Mardix offers a vast 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 utilize Flex’s global footprint and supply chain to establish itself as a trusted provider of quality products at scale across all major regions.

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. And 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 now on track to generate approximately $360 million in revenue in calendar 2021 and is well positioned for continued growth in the coming years. And 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.


“This acquisition builds on Flex’s previously articulated strategy to move toward higher margin opportunities in faster growing verticals in our Reliability business. With Anord Mardix, Flex’s business will be better positioned to capture rising global demand for data center power solutions.”

— Revathi Advaithi, Chief Executive Officer of Flex

“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.”

— James Peacock, who will be Managing Director, of Anord Mardix.