Flex Announces Intention to Spin Off its Cloud and Power Infrastructure Segment into a New Independent Publicly Traded Company

Spin-off will create two firms with distinct development methods which are poised to drive important buyer and shareholder worth

News abstract

• The new firm (“SpinCo”) will probably be a high-growth important digital and electrical infrastructure firm, delivering end-to-end energy and thermal administration applied sciences and built-in infrastructure programs for AI knowledge facilities and mission-critical purposes.
• Flex will proceed as a main superior manufacturing firm, designing and constructing extremely complicated merchandise and companies at international scale for premier manufacturers throughout diversified finish markets, with a disciplined concentrate on portfolio optimization, sturdy money move, and shareholder returns.
• Revathi Advaithi will develop into CEO of SpinCo. She can even function Chairman of the Board of Directors of Flex for a transitional interval upon the completion of the spin-off.
• Michael Hartung will probably be named CEO of Flex.
• Transaction supposed to be tax-free to shareholders and focused to shut within the first quarter of calendar 2027.

AUSTIN, Texas, May 5, 2026 /PRNewswire/ — Flex (NASDAQ: FLEX) at present introduced that its Board of Directors has unanimously authorized shifting ahead with a plan to spin off its Power and Cloud portfolio from Flex, creating two impartial, publicly traded firms, every optimally positioned to serve their clients and create worth for his or her shareholders.

“Today’s announcement is the next step in a deliberate transformation that has reshaped Flex into a technology-focused industrial company over the past seven years,” mentioned Revathi Advaithi, Chief Executive Officer of Flex. “By creating two focused, independent companies, we are giving SpinCo the platform to build and scale the products and digital infrastructure that the world’s most demanding AI workloads depend on, and Flex the focus to deliver advanced manufacturing solutions at global scale for diversified industries. We believe each company will have the strategic clarity and dedicated leadership to drive exceptional outcomes for their respective customers and shareholders. I’m excited to be part of the journey for both companies.”

Benefits of the spin-off

As separate firms, SpinCo and Flex are anticipated to profit from:

• Sharpened strategic focus and execution
• Distinct monetary profiles and capital allocation insurance policies
• Improved transparency round efficiency and expectations
• Unique funding approaches to fund long-term worthwhile development

Two main firms with distinct development methods

SpinCo: A world chief in important digital infrastructure, delivering end-to-end energy and thermal administration applied sciences for AI knowledge facilities and mission-critical purposes

SpinCo allows the scalable and dependable deployment of high-density digital and electrical infrastructure for various finish markets like AI knowledge facilities and utilities. By integrating energy, cooling, and compute on the system stage, SpinCo delivers coordinated, system-level options designed to exchange fragmented, multi-vendor approaches—enabling clients to obtain quicker time-to-capacity, improved infrastructure reliability, and scalable efficiency as energy densities and thermal complexity proceed to improve.

SpinCo is effectively positioned to profit from long-duration secular tendencies, together with electrification, rising energy depth, and rising infrastructure complexity. These dynamics are driving a sustained, multi-year buildout of digital infrastructure, significantly as synthetic intelligence adoption accelerates. With a differentiated know-how portfolio spanning energy distribution, thermal administration, and built-in infrastructure programs, from grid to chip, deep buyer relationships, and a globally built-in engineering, manufacturing, and service mannequin spanning 22 engineering and manufacturing facilities, SpinCo is positioned to develop share and pursue focused acquisitions to increase its capabilities.

As an impartial firm with skilled management and devoted capital allocation, SpinCo may have the operational focus and strategic flexibility to execute on its development alternatives. Flex is concentrating on SpinCo to generate roughly 65% ​​- 75% income development in fiscal 2027, with an acceleration to 80%+ in fiscal 2028.

Flex: A future-ready manufacturing associate designed for velocity, scale, and resilience

Following the spin-off, Flex will proceed to function as a main international manufacturing associate organized into two segments—Integrated Technology Solutions and Regulated Manufacturing Solutions—delivering design, vertically built-in manufacturing, and provide chain options enabled by automation, digital factories, and superior processes. The firm will serve the healthcare, industrial, automotive, communications, and life-style finish markets. As clients face rising product complexity, tighter improvement timelines, and rising regionalization necessities, Flex will assist speed up time to market and allow international scale by its end-to-end capabilities. With greater than 75 manufacturing and logistics websites throughout 30 nations, Flex offers clients with sourcing flexibility and operational resilience amid ongoing provide chain and geopolitical disruptions. Following the spin-off, the corporate is anticipated to proceed to be well-positioned to profit from long-term secular development tendencies, together with the growth of linked medical units, drug supply programs, vitality infrastructure, robotics, satellite tv for pc communications, and superior networking. With a simplified portfolio and sharper strategic focus, we imagine Flex is positioned to increase margins and actively optimize its portfolio towards higher-growth alternatives—driving robust money move and shareholder returns over the following few years.

Flex, excluding SpinCo, is anticipated to be strongly positioned for low-to-mid-single-digit development, continued margin growth, money technology, and a strong capital return framework.

“After more than 20 years with the company, I’m honored to help lead Flex into its next chapter,” mentioned Michael Hartung. “We’re well positioned to build on our longstanding foundation of global scale, operational excellence, and deep customer partnerships across regulated and technology-driven industries. By remaining focused on our strategic priorities and executing our proven playbook, we will continue to be the global manufacturer behind the products and systems that keep the world running, while delivering meaningful, long-term value for our customers and shareholders.”

Additional particulars of the transaction will probably be posted on the corporate’s web site.

Citi, PJT Partners and BofA Securities are serving as monetary advisors to Flex in reference to the spin-off.

Media, Investors, & Analysts

Michelle Simmons
Senior Vice President, Global Investor Relations and Public Relations
(669) 242-6332
[email protected]

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Dan Moore / Ed Hammond / Clayton Erwin
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Forward-Looking Statements

This press launch incorporates forward-looking statements throughout the that means of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Words akin to “anticipate,” “believe,” “expect,” “intend,” “may,” “plan,” “project,” “will,” and related expressions establish forward-looking statements. These forward-looking statements embrace, with out limitation, statements concerning the deliberate spin-off of our cloud and energy infrastructure enterprise into an impartial, publicly traded firm; the anticipated timing of the spin-off and the flexibility to full the spin-off; the anticipated advantages of the spin-off, together with enhanced strategic focus, monetary flexibility, and worth creation for shareholders; the anticipated tax-free therapy of the spin-off for US federal earnings tax functions; the anticipated future efficiency of every firm following completion of the spin-off; administration modifications and management of every firm; and statements about enterprise methods, development alternatives, market place, and monetary outlook for every firm. These forward-looking statements are primarily based on present expectations, estimates, and assumptions involving dangers and uncertainties that would trigger precise outcomes and outcomes to differ materially from these anticipated by these forward-looking statements. Readers are cautioned not to place undue reliance on these forward-looking statements.

Risks and uncertainties associated to the proposed spin-off embrace, however aren’t restricted to: uncertainties as to whether or not the spin-off will probably be accomplished and the timing thereof; the chance that varied circumstances to the completion of the spin-off is probably not glad or waived; the chance that the spin-off won’t qualify for the anticipated tax-free therapy for US federal earnings tax functions; the danger that the spin-off could also be harder, time-consuming, or pricey than anticipated, together with the affect on Flex’s assets, programs, procedures, and controls; the chance that the strategic, operational, and monetary advantages of the spin-off is probably not achieved or could take longer to obtain than anticipated; the failure to receive, or delays in acquiring, required authorized, regulatory or different approvals mandatory to full the spin-off; disruption from the spin-off, together with potential hostile results on relationships with clients, suppliers, staff, and different enterprise companions; aggressive responses to the announcement or completion of the spin-off; diversion of administration’s consideration from ongoing enterprise operations; the potential of disputes, litigation, or unanticipated prices in reference to the spin-off; uncertainty concerning the monetary efficiency of both firm following the spin-off; detrimental results of the announcement or pendency of the spin-off available on the market worth of Flex’s securities and/or on Flex’s monetary efficiency; the flexibility to obtain anticipated capital buildings, credit score scores, and financing in reference to the spin-off; the flexibility to retain key personnel; impacts of geopolitical conflicts; and any modifications normally financial and/or industry-specific circumstances. Additional info regarding dangers relating to our enterprise is described beneath “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most up-to-date Annual Report on Form 10-Ok and in our subsequent filings with the US Securities and Exchange Commission. All forward-looking statements are made as of the date hereof, and Flex assumes no obligation to replace or revise any forward-looking statements, whether or not as a results of new info, future occasions, or in any other case, besides as required by relevant regulation.

SOURCE Flex