NEW YORK, May 5 (Reuters) – Contract manufacturer Flex on Tuesday outlined plans for a strategic break-up to monetize its exposure to artificial intelligence, saying it would spin off its cloud and power infrastructure business into a separate publicly traded company by early 2027.
The split, which is subject to regulatory approvals, will create an AI data-center group alongside its core manufacturing operations. The separate business will focus on supplying power, cooling and integrated systems for data centers.
The $33.7 billion company did not disclose financial information for the unit to be spun off, including its revenue, profit margins or debt allocation, nor did it specify the stake it would retain in the new company.
Flex, excluding SpinCo, said it is expected to be positioned for low-to-mid-single-digit growth, it said in a press release.
Flex said Chief Executive Revathi Advaithi will lead SpinCo after the separation, while President Michael Hartung will become CEO of the remaining Flex.
The spin-off is expected to be tax-free to shareholders and is targeted to close in the first quarter of calendar 2027, subject to market conditions.
Citi, PJT Partners and BofA Securities are serving as financial advisers to Flex.
(Reporting by Sabrina Valle; Editing by Chizu Nomiyama )
