AUSTIN, Texas - In a move to enhance its data center solutions, Flex (NASDAQ: NASDAQ:FLEX) has acquired JetCool Technologies, a company specializing in advanced liquid cooling systems. Announced today, the acquisition is aimed at addressing the increasing power and cooling demands in artificial intelligence (AI) and high-performance computing sectors.
Flex, a global manufacturing leader, is integrating JetCool's liquid cooling technology into its portfolio to offer improved performance and efficiency for hyperscale and enterprise data centers grappling with the challenges of heat and scale. This strategic acquisition follows a partnership between the two companies at the 2024 OCP Global Summit.
Michael Hartung, President and Chief Commercial Officer at Flex, expressed enthusiasm about the acquisition, stating, "The addition of JetCool's advanced liquid cooling technology strengthens our ability to help customers address increased power, thermal density, and cooling requirements."
JetCool, based in Littleton, Massachusetts, has been developing liquid cooling solutions since 2019. Their products, which include fully sealed cold plates and direct liquid-to-chip systems, are designed to enhance device efficiency and performance. The company's recently launched Coolant Distribution Unit (CDU) is capable of cooling racks up to 300kW, with scalability for configurations over 2MW.
Dr. Bernie Malouin, CEO of JetCool, remarked on the acquisition's potential to elevate their technologies through Flex's global presence and manufacturing capabilities. He anticipates delivering integrated liquid-cooled systems and rack solutions on a larger scale.
Flex's expertise spans advanced manufacturing, IT, and power infrastructure solutions, from grid to chip, including the mass deployment of vertically integrated data center racks and power management products. Their services range from material sourcing to the design, manufacturing, and maintenance of various data center components.
The acquisition is based on a press release statement and is expected to foster innovations in high-performance computing while addressing the industry's power and thermal challenges. Interested parties can visit Flex at the JetCool booth #2651 at the SC24 conference from November 17 - 22, 2024, in Atlanta, Georgia.
In other recent news, Flextronics reported second quarter earnings that exceeded analyst estimates, with adjusted earnings per share of $0.64, surpassing the consensus of $0.57. However, the company's revenue of $6.5 billion fell short of expectations of $6.53 billion, marking a 5.6% year-on-year decline. For the third quarter, Flextronics has forecasted revenue between $6 billion and $6.4 billion, lower than Wall Street's estimate of $6.53 billion. The company's full-year outlook has also been revised, with revenue now projected at $24.9 billion to $25.5 billion, down from previous guidance. Analyst firm Craig-Hallum maintained a Buy rating on Flextronics shares and increased the price target to $45 from $39, citing the company's effective control over operations and significant improvements in profitability. The firm's positive outlook is anchored on the company's fiscal year 2027 earnings per share (EPS) target of $3.00. These are among the recent developments for Flextronics as the company navigates the current economic climate.
InvestingPro Insights
Flex's acquisition of JetCool Technologies aligns well with the company's strong market position and recent financial performance. According to InvestingPro data, Flex boasts a substantial market capitalization of $14.6 billion, reflecting its significant presence in the Electronic Equipment, Instruments & Components industry.
The company's strategic move into advanced cooling solutions for data centers is timely, given its impressive revenue of $25.45 billion in the last twelve months. This acquisition could potentially address the slight revenue decline of 6.49% observed in the same period, by opening up new growth avenues in the high-demand AI and high-performance computing sectors.
InvestingPro Tips highlight Flex's financial strength and market performance. The company has been aggressively buying back shares, indicating confidence in its future prospects. Additionally, Flex is trading at a low P/E ratio relative to its near-term earnings growth, with a current P/E ratio of 16.4. This suggests that the stock may be undervalued considering its growth potential, especially with the new acquisition.
Investors should note that Flex has shown a strong return over the last year, with a remarkable price total return of 94.21%. The stock is currently trading near its 52-week high, with the price at 93.75% of its peak, indicating positive market sentiment.
For those interested in a deeper analysis, InvestingPro offers 15 additional tips for Flex, providing a comprehensive view of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.