DivestmentMay 20, 2026, 05:07 PM
Flex to Spin Off Cloud and Power Infrastructure Business by Q1 2027
AI Summary
Flex Ltd. announced its intention to separate into two independent, publicly traded companies by the first quarter of calendar 2027. One company will comprise the Cloud and Power Infrastructure (CPI) segment, and the other will consist of the advanced manufacturing and supply chain solutions business (ITS and RMS segments). This transaction is intended to be tax-free for U.S. federal income tax purposes for shareholders. The company previously completed the spin-off of Nextracker Inc. on January 2, 2024.
Key Highlights
- Flex plans to spin off its Cloud and Power Infrastructure (CPI) segment into a separate public company.
- The spin-off is targeted for completion in Q1 calendar 2027, subject to customary conditions.
- The transaction is intended to be tax-free for U.S. federal income tax purposes for shareholders.
- Flex completed the spin-off of Nextracker Inc. on January 2, 2024.
- In fiscal year 2026, the ten largest customers accounted for 45% of net sales.
- No single customer accounted for greater than 10% of net sales in fiscal year 2026.
- Flex had approximately 150,000 employees globally as of March 31, 2026.
- Net sales distribution in fiscal year 2026: North America 44%, China 16%, Europe 20%, Other 20%.
Price Impact
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