Highlights

  • Flex completed its EPC Power acquisition and placed the business within its Cloud and Power Infrastructure segment.
  • EPC Power brings deployed capacity exceeding fifteen gigawatts and technology designed for next-generation eight-hundred-volt data centre power architectures.
  • Flex plans to separate Axiom during the first calendar quarter of next year, subject to required approvals.
  • Axiom’s announced preferred investment carries dividend obligations and remains subject to regulatory approvals and customary closing conditions.

With EPC Power now inside its Cloud and Power Infrastructure segment, Flex Ltd. (NASDAQ:FLEX) has completed an acquisition linked to its planned Axiom separation. The 14 October 2026 announcement adds power-conversion technology for data centres and grid applications, while the wider restructuring remains conditional. The purchase price and other acquisition terms were not disclosed.

Power Conversion Joins the Portfolio

EPC Power has more than 15 gigawatts deployed and a platform designed for next-generation 800-volt data-centre power architectures. Its technology includes power conversion and grid-forming capabilities, which Flex’s management identified as additions to the segment.

Chief executive Revathi Advaithi said the purchase broadens those capabilities. She is also expected to lead Axiom after separation, connecting the acquired business with the leadership planned for the new company.

Axiom Awaits Separation Approvals

Flex plans to separate the segment as Axiom Solutions International in the first calendar quarter of 2027. The proposed Nasdaq listing would use AXM. A Form 10 registration statement was filed with the US Securities and Exchange Commission on 15 September 2026.

The separation requires final board approval, effectiveness of the Form 10, and approval from Flex shareholders and the Singapore High Court. Those conditions mean the proposed timing is a target rather than a completed outcome.

An Innovation Day in Austin is scheduled for 10 November. It represents a dated company event within the preparation period, although the supplied material does not specify additional financial disclosures for that meeting.

Preferred Financing Carries Defined Costs

On 5 October, Flex announced a USD 2.0 billion investment in Axiom Series A Convertible Preferred Stock, led by General Catalyst and Koch Equity Development. The transaction uses an initial enterprise value of USD 37.5 billion and remains subject to customary regulatory approvals and closing conditions.

Before separation, the preferred shares carry a 10.0% annual cash dividend. After separation, the rate falls to 6.0% in cash or 7.0% if paid in kind, with possible increases after the fifth anniversary.

Proceeds are intended partly for the EPC Power purchase, repayment of any bridge financing, dividends and general corporate purposes. Flex separately secured committed term-loan financing for the remaining purchase price. General Catalyst may nominate one director following separation.

Earnings Provide the Next Dated Update

Second-quarter fiscal 2027 results are scheduled before the US market opens on 28 October 2026, followed by an earnings call at 8:30 a.m. Eastern. The preceding quarter ended on 26 June 2026, reflecting Flex’s March fiscal year-end.

The supplied document records first-quarter revenue of USD 7.93 billion, net income of USD 285 million and diluted earnings per share of USD 0.76. It expressly notes that those figures were not checked against the company’s own release, so they remain qualified financial context.

The next substantive transaction milestones concern separation approvals and financing completion. The acquisition announcement does not establish EPC Power’s eventual contribution to Axiom earnings or the final economics of the separated business.