Flex (NASDAQ: FLEX) has completed its US$540 million all-cash acquisition of Anord Mardix, a global vendor of power solutions, from private equity firm Bertram Capital.

The acquisition has been conceived to strengthen Flex’s Industrial business, adding to Flex’s portfolio of power solutions and expanding its offerings in the rapidly growing data centre market.

Anord Mardix is projected to generate approximately $360 million in revenue in calendar year 2021, and the transaction is expected to be accretive to adjusted earnings per share and 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 said in a statement.

Revathi Advaithi, CEO of Flex, said: “We are excited to complete this transaction and welcome the Anord Mardix team to Flex.

“This transaction advances Flex’s shift toward higher-margin lines of business and meaningfully strengthens our ability to offer leading data centre power solutions for new and existing customers around the world.”

Flex’s market play comes at a time when the data centre power market is projected to cross the $15 billion mark by 2026, according to latest report “Data Center Power Market by Component (Solution [Power Distribution Units (PDUs), UPS, Generators, Cabling Infrastructure], Service [Managed, Professional]), Application (BFSI, Colocation, Energy, Government, Healthcare, Manufacturing, IT & Telecom), Regional Outlook, Price Trends, Competitive Market Share & Forecast 2026”, by Global Market Insights.

The widespread adoption of IoT and cloud computing technologies among enterprises is propelling market growth.