Flex Announces $2 Billion Convertible Preferred Investment in Axiom Led by General Catalyst and Koch Equity Development
Flex has announced a strategic investment of $2 billion into its Cloud and Power Infrastructure segment, Axiom. The funding comes from General Catalyst, Koch Equity Development, and co-investors to support long-term growth as Flex prepares to spin off Axiom into an independent publicly traded company by early 2027. The transaction values Axiom at a $37.5 billion enterprise value and will provide capital for the acquisition of EPC Power while strengthening Axiom’s balance sheet ahead of its separation from Flex. The investment includes convertible preferred stock with dividend rates that adjust over time, offering investors returns before and after the spin-off. General Catalyst is expected to appoint a board member post-separation and has expressed strong confidence in Axiom's role as a leader in AI infrastructure power solutions. Flex CEO Revathi Advaithi emphasized how this move will create lasting value for shareholders while positioning Axiom at the forefront of next-generation computing needs.
Tickers: $FLEX
Topics: AI infrastructure M&A public listing strategic investment