Flex Announces $2.0 Billion Convertible Preferred Investment into Axiom Led by General Catalyst with Koch Equity Development
Key Highlights
- ➤Axiom receives $2.0 billion convertible preferred investment from General Catalyst, Koch Equity Development, and co-investors
- ➤Investment values Axiom at an initial enterprise value of $37.5 billion
- ➤Flex plans to separate Axiom into an independent public company in first-quarter 2027
- ➤Investment proceeds will fund part of Axiom’s pending EPC Power acquisition and related financing
- ➤Convertible preferred stock pays 10.0% cash dividend before separation, then 6.0% cash or 7.0% paid-in-kind
Expert Statements
Revathi Advaithi, Chief Executive Officer of Flex and expected Chief Executive Officer of Axiom
“This investment provides equity funding for our recently announced acquisition of EPC Power and will allow Axiom to have a strong balance sheet as we prepare to stand up as an independent, publicly traded company squarely focused on the power, thermal, and compute infrastructure the AI era demands”
Revathi Advaithi, Chief Executive Officer of Flex and expected Chief Executive Officer of Axiom
“General Catalyst brings deep conviction in applied AI and a long track record partnering with companies building category-defining leaders, and we're glad to have them partner with us as Axiom enters its next chapter. This transaction reflects the value we see in Axiom's business today and will translate into lasting value for Flex shareholders as the separation comes together.”
Hemant Taneja, Chief Executive Officer of General Catalyst
“Axiom sits at the center of the power and infrastructure buildout that AI demands, and we've been impressed by the team's execution and the scale of the opportunity ahead”
Hemant Taneja, Chief Executive Officer of General Catalyst
“We look forward to partnering with Axiom for the long term as it becomes an independent company and continues to invest in the technology and capacity this next phase of growth requires.”
Madhu Namburi, Managing Director of General Catalyst
“AI diffusion requires modern power solutions at scale”
Madhu Namburi, Managing Director of General Catalyst
“Under Revathi's leadership, we believe Axiom will become the defining power company of the AI era.”
Flex Announces $2.0 Billion Convertible Preferred Investment into Axiom Led by General Catalyst with Koch Equity Development PR Newswire
* Strategic investment from General Catalyst, Koch Equity Development, and co-investors to support long-term growth at Axiom, Flex's Cloud and Power Infrastructure segment * $2.0 billion convertible preferred equity investment is at an initial enterprise value for Axiom of $37.5 billion * Flex intends to separate Axiom into an independent, publicly traded company in the first quarter of calendar 2027 AUSTIN, Texas, Oct. 5, 2026 /PRNewswire/ -- Flex (NASDAQ: FLEX) announced today that it has entered into an agreement to sell $2.0 billion of shares of Series A Convertible Preferred Stock of Axiom Solutions International, Inc. (Axiom), Flex's Cloud and Power Infrastructure segment, to funds affiliated with General Catalyst, Koch Equity Development, and co-investors. Through this strategic investment, Axiom will be positioned to further capitalize on the growing AI infrastructure demand as it prepares to operate as an independent company. Pro-forma for the separation, the investment will be solely in Axiom.
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