Flex buys data centre power player from Bertram Capital to enter $10bn market

Flex plans to further penetrate a US$10-15 billion addressable data centre power market, that is expected to grow at an approximately 9% CAGR through 2026.

By João Marques Lima

Founder and Editor, The Tech Capital

3 Mins

October 19, 2021 | 2:00 AM BST

Flex buys data centre power player from Bertram Capital to enter $10bn market

Revathi Advaithi, Chief Executive Officer of Flex. Source: Flex

The Tech Capital

Flex (NASDAQ: FLEX) has entered into a definitive agreement to acquire Anord Mardix, a global critical power solutions provider, from private equity firm Bertram Capital.

The acquisition adds to Flex’s portfolio of power products and expands the company’s reach into the data centre power market which represents a US$10-15 billion opportunity.

The US$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.

Revathi Advaithi, Chief Executive Officer of Flex, said: “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.”

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.

The company’s product portfolio of critical power solutions includes 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 centre market, Flex said in a company statement.

James Peacock, who will be Managing Director, of Anord Mardix, said: “Anord Mardix primarily markets critical power directly to data centre 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 centre solutions to our customers.”

Anord Mardix is on track to generate approximately $360 million in revenue in calendar 2021. Flex said it 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, which has forecasted an FY22 global revenue of $25.5 billion to $26.5 billion, will announce its second-quarter fiscal year 2022 financial results after the market close on Wednesday, October 27, 2021.

Bertram Capital is a private equity firm targeting investments in lower middle-market companies. Since its inception in 2006, the firm has raised over $2.2 billion of capital commitments.


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João Marques Lima

Founder and Editor, The Tech Capital

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