Flex invests $2 billion in Axiom via convertible preferred stock to fund spin‑off and acquisition
Flex announced a $2.0 billion convertible preferred equity investment in its Cloud and Power Infrastructure segment, Axiom Solutions International. The deal is led by General Catalyst and Koch Equity Development and values Axiom at $37.5 billion. Flex plans to spin off Axiom as an independent public company in the first quarter of 2027, using the proceeds to support the pending EPC Power acquisition and strengthen Axiom’s balance sheet.
Why it matters
Flex says the funding will provide equity capital for the EPC Power purchase and give Axiom a strong balance sheet ahead of its planned spin‑off in early 2027, which it expects will create lasting value for Flex shareholders.
Key facts
- 1Flex agreed to sell $2.0 billion of Series A Convertible Preferred Stock of Axiom Solutions International, Inc. prnewswire.com
- 2The transaction values Axiom at an initial enterprise value of $37.5 billion. prnewswire.com
- 3The spin‑off of Axiom is targeted for the first quarter of calendar 2027. prnewswire.com
- 4The preferred shares pay a 10.0% per annum cash dividend before the separation, decreasing to 6.0% cash or 7.0% in‑kind after the separation. prnewswire.com
- 5Net proceeds will fund part of the purchase price of Axiom’s pending acquisition of EPC Power, repay bridge financing, pay dividends, or for general corporate purposes. prnewswire.com
- 6The deal involves 200,000 preferred shares priced at $10,000 each. tradingview.com
Summary written by AlphAI from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.