Flex's Cloud and Power Business Gets $2B in Convertible Stock Investment Ahead of Spinoff

Dow Jones2026/10/05 13:07

By Kelly Cloonan Flex agreed to sell $2 billion in convertible preferred stock of Axiom Solutions International, its cloud and power-infrastructure segment, as it prepares to spin off the business. Flex said Monday the investment--which was led by General Catalyst with participation from Koch Equity Development and other investors--positions Axiom to capitalize on growing demand for artificial-intelligence infrastructure as it prepares to operate as an independent company. As part of the investment, General Catalyst will have the right to nominate one director to Axiom's board of directors following completion of the separation. Axiom said it would use the proceeds from the investment to fund a portion of its pending acquisition of power conversion solutions provider EPC Power. Flex had disclosed the $4.4 billion deal for EPC last month. Flex disclosed earlier this year the plans to separate Axiom into its own publicly traded company focused on power, thermal and compute infrastructure for AI. The company said Monday it expects the separation to close in the first quarter of calendar year 2027. Write to Kelly Cloonan at kelly.cloonan@wsj.com (END) Dow Jones Newswires October 05, 2026 09:07 ET (13:07 GMT)

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