Flex Lands $2B Convertible Investment for Axiom Spinoff, Led by General Catalyst
FLEX has more than doubled off its 52-week low of $53.07.
Summary
Flex secured a $2 billion convertible preferred investment in its Axiom Solutions International cloud and power-infrastructure segment, led by General Catalyst with Koch Equity Development participating. The capital will fund part of Axiom's pending $4.4 billion acquisition of EPC Power, a power conversion technology provider for AI data centers. General Catalyst gains the right to nominate one director to Axiom's board after the separation, which Flex now expects to close in Q1 calendar 2027. This follows the September announcement of the EPC Power deal and the July disclosure of the Axiom spin-off plans. The investment validates Axiom's AI infrastructure strategy and reduces financing risk for the EPC acquisition ahead of the shareholder vote on November 2, 2026.
At the time of this announcement, FLEX was trading at $118.89 on NASDAQ in the Technology sector, with a market capitalization of approximately $43.1B. The 52-week trading range was $53.07 to $166.86. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.