Austin, Texas – October 05, 2026 -- Flex (NASDAQ: FLEX) has agreed to sell $2.0 billion of Series A Convertible Preferred Stock in Axiom Solutions International, its Cloud and Power Infrastructure segment, to funds affiliated with General Catalyst, Koch Equity Development, and co-investors, at an initial enterprise value of $37.5 billion for Axiom.
Flex Targets Q1 2027 for Axiom's Independent Public Listing
Flex intends to separate Axiom into an independent, publicly traded company in the first quarter of calendar 2027, with the current investment structured to apply solely to Axiom on a pro-forma basis once the separation completes.
Proceeds Fund Pending EPC Power Acquisition
Net proceeds will fund a portion of Axiom's pending acquisition of EPC Power, repay any bridge financing tied to that deal, cover dividends on the preferred stock, or support general corporate purposes. Flex has separately secured committed term loan financing to cover the remaining balance of the EPC Power acquisition.
Preferred Stock Carries 10% Cash Dividend Before Separation
The Convertible Preferred Stock pays a 10.0% annual cash dividend prior to separation, stepping down to 6.0% in cash or 7.0% if paid in kind afterward, subject to increases after the fifth anniversary of the separation and other adjustments.
General Catalyst Secures Board Nomination Rights
As part of the deal, General Catalyst will have the right to nominate one director to Axiom's board following completion of the separation. Hemant Taneja, CEO of General Catalyst, said the firm has been impressed by the team's execution and the scale of the opportunity in power and infrastructure buildout tied to AI demand.
Revathi Advaithi, CEO of Flex and expected CEO of Axiom, said the investment provides equity funding for the EPC Power acquisition and strengthens Axiom's balance sheet ahead of its standalone listing focused on power, thermal, and compute infrastructure.
Deal Closing Contingent on Regulatory Approvals
The investment is expected to close following receipt of customary regulatory approvals and satisfaction of other closing conditions. PJT Partners is serving as financial advisor and Skadden, Arps, Slate, Meagher & Flom LLP as legal counsel to Flex, while Davis Polk & Wardwell LLP is advising General Catalyst.