Marvell to buy XConn Technologies in $540m deal

Core Viewpoint - Marvell Technology is acquiring XConn Technologies for approximately $540 million, enhancing its portfolio in PCIe and CXL switching products to support data center connectivity, particularly for AI infrastructure [1][3]. Acquisition Details - The acquisition will be financed with approximately 60% cash and 40% stock, involving the issuance of roughly 2.5 million common shares based on a 20-day volume weighted average price [1][2]. - The transaction is expected to close in early 2026, pending regulatory approvals and customary conditions [2]. Financial Projections - Revenue from XConn's CXL and PCIe switch lines is projected to begin contributing in the second half of fiscal year 2027, with expectations for annual revenue to reach around $100 million in fiscal year 2028 [3]. Strategic Enhancements - The acquisition will augment Marvell's Ultra Accelerator Link (UALink) development by adding experienced engineers from XConn, enhancing capabilities in high-performance switching [4]. - Marvell aims to broaden its addressable market for both traditional computing architecture and accelerated memory disaggregation requirements through the integration of XConn's portfolio [5]. Industry Positioning - The combination of Marvell's controllers with XConn's switching products will create a comprehensive offering for demanding AI applications, positioning the company to meet the growing needs of AI systems [6]. - Both companies share a vision for high-speed connectivity as essential for modern data centers, aiming to drive innovation in AI [7].