A versatile distribution transformer having an electromagnetic transformer and a power electronic module is provided. A pocket having connectors electrically connected to at least one winding structure of the electromagnetic transformer is mounted above the electromagnetic transformer. The power electronic module is removably mounted in a cavity of the pocket. The power electronic module includes a plurality of semiconductor switching devices and a plurality of connectors adapted to slidably engage the connectors of the pocket. The power electronic module is movable between a removed position, wherein the power electronic module is located outside the pocket, and an installed position, wherein the power electronic module is disposed in the cavity of the pocket and the connectors of the power electronic module engage the connectors of the pocket so as to electrically connect the power electronic module to the at least one winding structure.