Flex said on 5 October that it had entered an agreement 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. The transaction announcement places Axiom at an initial enterprise value of $37.5 billion. The investment is directed to Axiom, which Flex plans to separate as an independent, publicly traded company in the first quarter of 2027, subject to customary conditions. The announcement is an agreement, not a report that the money has already closed.

Flex said proceeds are intended to fund part of Axiom’s pending acquisition of EPC Power, repay any bridge or other intermediate financing connected with that purchase, pay preferred-stock dividends or support general corporate purposes. Flex separately secured committed term-loan financing for the balance of the EPC Power purchase price. The filing does not say EPC Power’s acquisition has closed. The $2 billion preferred investment is also expected to close only after customary regulatory approvals and satisfaction of other customary closing conditions.

The preferred shares carry a 10% annual cash dividend before Axiom’s separation. After the separation, the rate steps down to 6% in cash or 7% if paid in kind, subject to increases after the fifth anniversary and other adjustments described in the filing. General Catalyst will have the right to nominate one Axiom director following completion of the separation. These terms describe the proposed security and governance rights, not a guaranteed return or a completed appointment. The stated $37.5 billion enterprise value is the initial transaction basis and should not be confused with a public-market valuation.

Flex’s plan is to turn its cloud and power infrastructure segment into a separate listed business during the first quarter of 2027, but the company says the timing and completion depend on customary conditions. The filing lists risks including required approvals, the possibility that conditions are not met, execution challenges and uncertainty around benefits or timing. The announced investment, the pending EPC Power acquisition and the intended spin-off are three linked but distinct steps. Investors and suppliers will need later filings to see whether each closes, how the capital is used and whether the separation timetable changes.