$FLEX · FLEX LTD.

Flex Ltd. completed its $4.4 billion cash acquisition of EPC Power Corp. on October 14, 2026, funded through a $3.3 billion senior term loan and a $1.1 billion bridge facility — both maturing October 13, 2027. EPC Power will be housed in Flex's Cloud and Power Infrastructure business, which Flex plans to spin off as Axiom Solutions International in Q1 2027. A separate $2.0 billion Series A preferred investment in Axiom by GC Venture XIII and other investors remains pending regulatory approval and is expected to repay acquisition-related borrowings.

FLEX shares are down 5.42% in the regular session to $110.88, suggesting the market is weighing the $4.4 billion debt load against the strategic rationale of the acquisition and planned spin-off.

Flex has taken on $4.4 billion in debt due within one year to fund this acquisition, making the Axiom spin-off and preferred raise existential to its balance sheet.

Flex's acquisition of EPC Power and planned spin-off of its Cloud and Power Infrastructure unit into Axiom Solutions mirrors the broader trend of industrial conglomerates separating high-growth segments to unlock shareholder value, similar to recent breakups at GE and Johnson Controls.

The $4.4 billion in combined bridge and term debt matures in just 364 days (October 13, 2027), creating refinancing risk if the Axiom spin-off or $2.0 billion preferred investment is delayed. The Preferred Investment closing remains contingent on HSR clearance and other regulatory approvals, with no