Flex Plans 2027 Spin-Off of AI Infrastructure Business

Flex plans to separate its Cloud and Power Infrastructure business into a new public company focused on AI data-center infrastructure, giving shareholders a planned stake in the standalone business targeted for the first quarter of 2027.

The new company, Axiom Solutions International Inc., is expected to trade on Nasdaq under the ticker AXM. It will provide power and thermal-management technologies, as well as integrated infrastructure systems for AI data centers and other mission-critical applications.

Flex expects to distribute approximately 88% to 94% of Axiom’s outstanding shares to Flex shareholders on a pro rata basis. Flex plans to retain about 6% to 12% of Axiom for up to 24 months after the distribution.

The separation remains subject to approval by Flex’s board and shareholders, approval from the Singapore High Court and the effectiveness of Axiom’s Form 10 registration statement. The transaction may not be completed on the proposed timetable, or at all, if those conditions are not satisfied.

Revathi Advaithi, Flex’s chief executive officer, is expected to become Axiom’s CEO. “Axiom is built to lead the next generation of critical digital and electrical infrastructure,” Advaithi said.

“By bringing together power, thermal management and compute at the system level, we help customers deploy increasingly complex infrastructure with greater speed and scale, as AI drives new demands on the physical infrastructure behind it,” she said.

The transaction would leave Flex with its remaining manufacturing operations while Axiom becomes a standalone company centered on digital and electrical infrastructure for AI data centers.

Investor Paul Meeks said he would prefer to own Axiom after the separation. He estimated that the business could increase revenue by at least 80% in fiscal 2028 and eventually expand operating margins from about 10% to 15%–20%.

Those projections are Meeks’ personal estimates and are not confirmed company guidance. “I would prefer to own Axiom after the separation,” Meeks said.

The planned distribution is intended to be tax-free to Flex shareholders for U.S. federal income-tax purposes, except for cash received instead of fractional shares. The next steps are the required corporate, shareholder, court and registration approvals before the targeted first-quarter 2027 separation.