General Catalyst to Invest $2 Billion in Flex's Axiom
The equity stake is meant to fund Flex’s $4.4 billion EPC Power purchase and leave the soon-to-be-spinoff with a stronger balance sheet as it prepares to trade on its own.
General Catalyst, Koch Equity Development, and co-investors agreed to invest $2.0 billion in Axiom Solutions International, Inc., the Cloud and Power Infrastructure unit that Flex (FLEX) plans to separate into an independent publicly traded company.
The investment is a strategic equity commitment intended to support long-term growth at Axiom as it prepares to operate standalone. The funding will provide equity for Axiom’s recently announced acquisition of EPC Power and leave Axiom with a stronger balance sheet as it stands up as a public company focused on power, thermal, and compute infrastructure for the AI era.
Revathi Advaithi, chief executive officer of Flex and expected chief executive officer of Axiom, said the investment “provides equity funding for our recently announced acquisition of EPC Power and will allow Axiom to have a strong balance sheet as we prepare to stand up as an independent, publicly traded company squarely focused on the power, thermal, and compute infrastructure the AI era demands.”
The equity is tied to a larger corporate sequence. In September, Flex entered a definitive agreement to acquire EPC Power at a value of $4.4 billion, subject to customary adjustments, with the deal expected to close in the fourth quarter of calendar 2026. EPC Power is expected to join the Cloud and Power Infrastructure segment, which Flex plans to separate into an independent public company in the first calendar quarter of 2027.
EPC Power provides intelligent power conversion for data center and grid applications, with more than 15 GW deployed across 62 countries and annual U.S. manufacturing capacity expected to surpass 30 GW in 2027. The platform is engineered for next-generation 800V data center power architectures and is expected to generate approximately $800 million of revenue in calendar 2026, with organic revenue growth of approximately 40% expected in 2027 and EBITDA margin expanding by double-digit percentage points to approximately 30% in 2027.
Flex is evaluating various financing alternatives and expects to fund the EPC Power transaction with a combination of debt and equity. The $2.0 billion General Catalyst-led stake is the equity piece of that plan, directed at Axiom rather than Flex’s remaining businesses.
Leadership for the spinoff was already in place. Flex named Advaithi as expected chief executive of the standalone company, with Kevin Krumm expected to become its chief financial officer upon completion of the separation. Michael Hartung is expected to lead Flex after the split.
The deal is expected to close following receipt of customary regulatory approvals and satisfaction of other customary closing conditions.