Flex agrees to sell $2 billion of preferred shares in Axiom
Flex agreed to sell $2 billion of Axiom convertible preferred shares at a $37.5 billion initial enterprise value, subject to regulatory approvals.
Flex announced an agreement on October 5 to sell $2 billion of Axiom Solutions International convertible preferred shares to funds affiliated with General Catalyst and Koch Equity Development and co-investors. Closing remains subject to regulatory approvals and other conditions, according to its filing.
The company's business covers cloud computing infrastructure and power, and it is one of the entities that Flex intends to spin off in the first quarter of 2027 under its announced plan.
The company is scheduled to be publicly traded as an independent entity after completing the spin-off, making the deal a preliminary step toward an upcoming listing.
The transaction topped Crunchbase's list of the largest funding rounds in the United States during the week, reflecting the continued influx of capital into AI infrastructure and energy projects.
What do these terms mean?
Enterprise Value: The complete value of a company when accounting for debt and cash reserves, differing from market capitalization which measures equity value alone.
Spin-off: The separation of a division from a large company to become an independent entity, often publicly traded with its own shares.
Cloud Infrastructure: Data centers, networks, and servers that digital services run on, serving as the backbone for internet and AI services.
Convertible Preferred Shares: Shares with preferential rights that may convert to common shares under specified terms.
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