Flex Strengthens Reverse Logistics and Circular Economy Services with Acquisition of FreeFlow

Rhea-AI Summary

Flex (NASDAQ: FLEX) has acquired FreeFlow to enhance its reverse logistics and circular economy services. This acquisition aims to provide additional revenue streams and promote sustainability by utilizing second life products. FreeFlow's B2B marketplace allows for the sale of surplus and returned inventory while safeguarding primary sales channels. This move will expand Flex's services across various markets, including data centers and lifestyle products, enhancing post-sale services like repair, refurbishment, and asset recovery.

Michael Hartung, Flex's president of Agility Solutions, stated that this acquisition aligns with Flex's commitment to meeting customer needs and increasing market reach. Flex plans to broaden FreeFlow's capabilities into additional industries and regions to foster sustainable solutions.

Positive

• Flex's acquisition of FreeFlow bolsters its services portfolio, particularly in reverse logistics and circular economy segments.
• FreeFlow's platform provides new revenue streams through the sale of surplus and returned inventory.
• The acquisition expands Flex's market reach across various sectors, including data centers and lifestyle products.
• Flex enhances its sustainability initiatives by promoting second life products, aligning with environmental commitments.
• Flex plans to extend FreeFlow's digital circular economy tracking and reporting capabilities into more industries and regions.

Negative

• The financial terms of the acquisition are not disclosed, leaving investors uncertain about its cost and immediate financial impact.
• Integration of FreeFlow's services into Flex's existing operations may pose challenges and incur additional costs.
• The success of the acquisition is contingent upon the effective integration and performance of FreeFlow's platform in new markets.

Company expands services for customers across multiple markets to create additional revenue streams and accelerate sustainability through second life products

AUSTIN, Texas, May 31, 2024 /PRNewswire/ -- Flex (NASDAQ: FLEX) announced today it has acquired FreeFlow, a company serving global secondary markets with asset disposition and digital circular economy tracking and reporting capabilities. FreeFlow's B2B digital marketplace platform enables customers to sell surplus and returned inventory while protecting primary sales channels. The addition expands Flex's services for customers across multiple markets, including data center, enterprise, and lifestyle, to create additional revenue streams and accelerate sustainability through second life products.

FreeFlow's digital marketplace platform and offerings bolster the company's product lifecycle services portfolio spanning design, supply chain, advanced manufacturing, vertical integration, post-production, and post-sale capabilities. As part of post-sale services, the new offering expands existing reverse logistics and circular economy capabilities, including sustainability analytics, repair, refurbishment, asset recovery, and recycling.

"The acquisition of FreeFlow reaffirms Flex's commitment to deliver the highest value to our customers, addressing their evolving business and sustainability needs across the product lifecycle while increasing our addressable market," said Michael Hartung, president of Agility Solutions at Flex. "This addition further differentiates our end-to-end services and will enable a wide range of customers, from cloud to lifestyle, to realize the benefits of second life products, and ultimately deliver on their environmental commitments." 

Flex plans to expand FreeFlow and digital circular economy tracking and reporting capabilities into additional industry segments and major regions to help new and existing customers securely access secondary markets and drive faster adoption of sustainable solutions. 

About FreeFlow

For more than 20 years, FreeFlow has delivered improved profitability to the product lifecycle through deep domain expertise in circularity and a scalable, cloud-based B2B secondary marketplace for asset disposition, enabling customers to sell surplus and returned inventory while protecting primary channel strategies. The company's independently-hosted digital platform removes the need for IT systems integration and provides a secure marketplace that gives customers complete control over sales processes, trading, and reporting.

Most recently, the company added digital circular economy tracking and reporting capabilities to its portfolio that enable customers to collect and share product lifecycle information, enhance decision making about product manufacturing, reuse and recycling, and report the associated carbon impact.

About Flex

Flex (Reg. No. 199002645H) is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across 30 countries and responsible, sustainable operations, Flex delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets.

Contacts

Investors & Analysts 
David A. Rubin 
Vice President, Investor Relations 
(408) 577-4632 
David.Rubin@flex.com

Media & Press 
Jessica Anderson 
Director, Corporate Integrated Marketing and Communications
(408) 577-4789
Jessica.Anderson@flex.com  

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SOURCE Flex

FAQ

What is the significance of Flex's acquisition of FreeFlow?

The acquisition enhances Flex's reverse logistics and circular economy services, aiming to create additional revenue streams and promote sustainability through second life products.

How does FreeFlow's platform benefit Flex?

FreeFlow's B2B marketplace allows Flex customers to sell surplus and returned inventory while protecting primary sales channels, thus supporting sustainability and generating new revenue streams.

Which markets will benefit from Flex's acquisition of FreeFlow?

The expanded services will benefit several markets, including data centers, enterprise, and lifestyle products.

What are the future plans for FreeFlow under Flex?

Flex plans to expand FreeFlow's digital circular economy tracking and reporting capabilities into more industry segments and regions to drive sustainable solutions.

How will the acquisition affect Flex's sustainability efforts?

The acquisition supports Flex's sustainability initiatives by promoting second life products, which align with environmental commitments and enhance circular economy capabilities.