Flex Ltd (NASDAQ:FLEX) agreed to sell $500 million of convertible preferred equity in Nextracker to TPG Rise Climate, the dedicated climate investing strategy of TPG's global impact investing platform TPG Rise.

• The investment is at an implied enterprise value for Nextracker of $3.0 billion, in the form of convertible preferred security with a 5.0% annual dividend. 
• The convertible preferred security will convert into common equity of Nextracker at the time of a qualified initial public offering for Nextracker. 
• Net proceeds from the transaction will help fund growth and generate returns for Flex shareholders.
• Through the collaboration and investment from TPG, Nextracker will continue to expand its market-leading position in solar tracking and software solutions.
• TPG's experience and extensive network in renewable energy provide Nextracker with a solid partner to support long-term growth.
• Jonathan Coslet, Vice Chairman of TPG, and Steven Mandel, Business Unit Partner in TPG Rise, will join the Nextracker board as part of the investment.
• Price Action: FLEX shares traded higher by 4.50% at $17.52 on the last check Thursday.