Marvell to buy XConn Technologies in $540m deal

Marvell Technology has agreed the acquisition of XConn Technologies for astir $540m, with the transaction comprising astir 60% currency and 40% stock.

The acquisition is acceptable to fortify Marvell’s portfolio successful PCIe and CXL switching products, with the integration of XConn’s exertion and engineering squad expected to enactment the company’s information centre connectivity strategy, peculiarly successful AI infrastructure.

Marvell volition contented astir 2.5 cardinal communal shares arsenic portion of the banal component, valued based connected a 20-day measurement weighted mean price.

The companies expect closing the transaction successful aboriginal 2026, taxable to regulatory approvals and customary conditions.

XConn presently supplies PCIe 5 and CXL 2.0 switches to implicit 20 customers and has started sampling its PCIe 6 and CXL 3.1 products.

Marvell projects that gross from XConn’s CXL and PCIe power lines volition statesman contributing successful the 2nd fractional of its fiscal twelvemonth 2027, with expectations for yearly gross from these products to scope astir $100m successful fiscal twelvemonth 2028.

The acquisition is intended to heighten Marvell’s presumption successful addressing request for high-bandwidth, low-latency connectivity solutions required by evolving multi-rack information centre platforms supporting AI workloads.

The woody volition besides augment Marvell’s Ultra Accelerator Link improvement efforts by adding experienced engineers from XConn with expertise successful high-performance switching.

UALink, precocious established arsenic an unfastened manufacture standard, is designed to supply businesslike scale-up connectivity betwixt aggregate accelerators successful information centres.

By combining assets and personnel, Marvell aims to summation its quality to service customers seeking precocious infrastructure solutions utilizing PCIe and CXL technologies.

In summation to expanding method capacity, Marvell expects the integration of XConn’s portfolio volition broaden its addressable marketplace for some accepted computing architecture and accelerated representation disaggregation requirements.

Marvell president and CEO Matt Murphy said: “With XConn, we adhd proven PCIe and CXL power products, IP, and engineering endowment to grow our UALink scale-up power team.

“Combined with our pending acquisition of Celestial AI, we volition beryllium good positioned to present customers the performance, flexibility, and architectural prime they request arsenic AI systems turn successful size and complexity.”

The operation of Marvell’s controllers with XConn’s switching products volition found a broad offering for customers operating demanding AI applications.

XConn CEO Gerry Fan said: “We stock a communal imaginativeness for high-speed connectivity arsenic the instauration of modern information centers, and we look guardant to moving unneurotic to assistance customers thrust caller waves of AI innovation.”