❯ Flex brings in a $2 billion preferred investment for Axiom ahead of its spin-off, setting enterprise value at $37.5 billion

A price before the separationManufacturing services provider Flex has secured a $2 billion convertible preferred investment in its Axiom Solutions International unit. According to Converge Digest, the buyers are funds affiliated with General Catalyst and Koch Equity Development, along with co-investors, and the deal establishes an initial enterprise value of $37.5 billion for Axiom.

A power chain from grid to chipAxiom is the business Flex has assembled around high-density AI infrastructure, combining embedded and critical power, electrical infrastructure, power conversion, thermal management and compute integration. Flex formally named the business in September and plans to spin it off as an independent public company in the first quarter of 2027, subject to required approvals.

The money goes to EPC PowerThe financing provides equity capital for Axiom’s pending acquisition of EPC Power, a $4.4 billion deal Flex announced in September, with committed term loans arranged for the remainder. EPC Power moves Axiom’s portfolio upstream into megawatt-scale power conversion, energy storage and 800-volt DC architectures. The preferred shares carry a 10% annual cash dividend before the separation.

A benchmark for power hardwareAxiom had previously disclosed its operating scale but had no valuation set by outside investors. The $37.5 billion figure gives its spin-off a reference point that public investors will later compare against its trading price. Neither the preferred investment nor the EPC Power acquisition has closed.

▮ SIGNALThe hardware that powers and cools data centers is being priced and listed on its own, as capital values AI infrastructure layer by layer beyond the chip.