Flex announced that its wholly-owned subsidiary, Axiom Solutions International, Inc., has entered into a definitive agreement for a $2 billion investment in Series A Convertible Preferred Stock. Axiom is the entity intended to become an independent public company through the spin-off of Flex's Cloud and Power Infrastructure business. The private placement is led by an affiliate of General Catalyst.
Key Details
- Investment Agreement: On October 2, 2026, investors agreed to purchase 200,000 shares of Axiom's Series A Convertible Preferred Stock for an aggregate price of $2.0 billion, at a per-share price of $10,000.
- Strategic Context: The investment is in connection with Flex's previously announced plan to spin-off its Cloud and Power Infrastructure business (Axiom) in Q1 2027 and its pending acquisition of EPC Power Corp, which will become part of Axiom.
- Spin-Off Guaranty: Flex has guaranteed Axiom's obligation to redeem the preferred stock if the spin-off is not consummated by December 31, 2027. The redemption price would be 115% of the purchase price if paid in cash, or 125% if paid in Flex's ordinary shares.