Flex Agrees to Sell $2 Billion in Convertible Preferred Stock of Axiom Solutions Ahead of Separation
Flex Ltd. (FLEX) announced it has agreed to sell $2 billion worth of convertible preferred stock in its cloud and power infrastructure segment, Axiom Solutions International, to funds affiliated with General Catalyst, Koch Equity Development, and co-investors. The transaction is expected ahead of Flex's planned separation by 2027. The deal implies an initial enterprise valuation for the stake being sold, signaling investor confidence in Axiom’s potential as a standalone entity. Shares of Flex rose slightly on Monday following the announcement, reflecting positive market sentiment toward the strategic move and capital raise. This transaction is part of Flex's broader strategy to separate its business segments into distinct entities, aiming to unlock value for shareholders by focusing each company on specific growth opportunities.
Tickers: $FLEX
Topics: Axiom Solutions International convertible preferred stock investment