Flex to Sell $2 Billion of Axiom Solutions' Series A Convertible Preferred Shares
MT newswire2026/10/05 13:0309:03 AM EDT, 10/05/2026 (MT Newswires) -- Flex (FLEX) said Monday it has agreed to sell $2 billion of Series A convertible preferred shares of its Axiom Solutions International business to funds affiliated with General Catalyst, Koch Equity Development, and other co-investors. General Catalyst will have the right to nominate one director to Axiom's board after the separation of Axiom into an independent, public company in Q1 of 2027, Flex said. The convertible preferred stock pays a 10% annual cash dividend before the spin-off, lowering to 6% per year in cash or 7% if paid in kind following the separation, subject to increases five years after the spin-off, the company said. Flex will use proceeds from the investment to fund a part of the purchase price of Axiom's pending acquisition of EPC Power, repay any equity bridge or other funding related to the acquisition, pay dividends on the convertible preferred stock, or for general corporate purposes, it said. Shares of Flex were up 2% pre-bell.
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