What the Crown Technical Systems Acquisition Means for Flex

Flex, a leading global electronics manufacturer, is eager to extend its presence into the growing utility power market. Its move to do this is acquiring Crown Technical Systems, a leader in fully integrated power distribution and protection systems. 

Such an acquisition is designed for Flex to enhance its data centre power solutions with integrated distribution and medium-voltage capabilities. This is in addition to Crown Technical Systems supporting the manufacturer to grow further into the US data centre power market.

The acquisition has taken place for US$325m in an all-cash transaction and is expected to be accretive in the first year after closure.

Who is Crown Technical Systems?

Crown Technical Systems is a leader in power distribution and protection systems. Its main area of focus is state-of-the-art control panels, medium voltage switchgear and enclosures such as control buildings and e-houses.

With almost three decades of experience in solving pressing power distribution and control challenges, the company specialises in customised turn-key solutions to confront the challenge of safe, secure and reliable power distribution.

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

When it comes to data centres, the advanced solutions of Crown Technical Systems are designed to ensure seamless integration and robust performance, as it stands to support the complex and demanding requirements of modern data centres. The company assists its clients meet high standards of safety, efficiency and sustainability across their data centre operations.

With such a portfolio, Flex has strategically acquired the company to further expose itself to fast-growing end-markets - including modular data centre adoption and medium voltage power distribution. 

The acquisition also aims to extend Flex's power portfolio into the utility power market, which is supported by long-term trends in grid modernisation and energy generation growth. Simultaneously, Crown Technical Systems will also help Flex strengthen its critical power portfolio and accelerate its US data centre market growth.

Extensive modular solutions and medium voltage switchgear capabilities are the essence of the Flex data centre power portfolio, which Crown Technical Systems is well-placed to support.

An evolving global data centre market

Data centres are becoming more essential within the global digital economy and as such, the industry has experienced extreme growth in recent years. Such growth is attributed to the increased popularity of artificial intelligence (AI) applications, in addition to rising demands for data processing and storage.

With the global data centre market projected to reach US$450bn by 2027, it is now more apparent that there is a worldwide need for reliable and efficient infrastructure to support and secure our data.

“The addition of Crown Technical Systems strengthens our position to help customers solve power, heat, and scale challenges in the data centre space aligned with our long-term growth strategy,” comments Revathi Advaithi, Chief Executive Officer of Flex.

“This acquisition reaffirms our commitment to differentiate our value through our EMS + Products + Services strategy that will deliver longer-term shareholder value.”

As mentioned by Flex, Crown Technical Systems is expected to generate revenue of approximately US$120m in fiscal 2025. Its transaction is expected to close no later than December 2024, subject to customary closing conditions, including regulatory approval.

******

Make sure you check out the latest edition of Data Centre Magazine and also sign up to our global conference series - Tech & AI LIVE 2024

******

Data Centre Magazine is a BizClik brand