AUSTIN, TX – Flex announced plans to spin off its cloud and power infrastructure segment into a standalone public company focused on AI data center infrastructure, power management and thermal technologies.

The new company, referred to as SpinCo, will concentrate on digital and electrical infrastructure systems for AI and mission-critical applications, while Flex will continue operating as an advanced manufacturing provider serving healthcare, automotive, industrial, communications, and lifestyle markets.

Flex said the transaction is intended to be tax-free to shareholders and is expected to close during the first quarter of calendar 2027. Revathi Advaithi will become CEO of SpinCo and remain chairman of Flex during a transition period, while Michael Hartung will take over as CEO of Flex.

The company said SpinCo is positioned to benefit from rising AI adoption, increasing power density, electrification, and growing infrastructure complexity. Flex is targeting approximately 65% to 75% revenue growth for SpinCo in fiscal 2027, accelerating to more than 80% in fiscal 2028.

“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,” said Revathi Advaithi, CEO of Flex.

Following the separation, Flex will continue operating more than 75 manufacturing and logistics facilities across 30 countries, focusing on advanced manufacturing, supply chain solutions, and automation-enabled production.

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