Overview
- Flex said it will separate its Cloud and Power Infrastructure unit into a new public company, with CEO Revathi Advaithi set to lead the spin-off and Michael Hartung to run the remaining Flex.
- The company targets a tax-free distribution to shareholders in the first quarter of 2027, subject to regulatory approvals and market conditions.
- The new company will provide power equipment, cooling systems and integrated data-center solutions built for AI-heavy computing.
- Flex did not disclose the unit’s revenue, profit margins, debt allocation or any retained stake, leaving key valuation and capital-structure details unknown.
- On its earnings call, Flex reported record margins and forecast higher 2027 sales and capital spending tied to data-center projects, and it reaffirmed rapid growth targets for the unit backed by a multi-year Google award.