Marvell Technology announced a $540 million acquisition of XConn Technologies, a developer of PCIe and CXL switching silicon. The deal will be paid with roughly 60 % cash and 40 % Marvell common stock, amounting to about 2.5 million shares. The transaction is expected to close in early 2026 after regulatory approval.
The purchase expands Marvell’s high‑bandwidth interconnect lineup by adding XConn’s PCIe 5 and PCIe 6 switch products and its CXL 2.0 and CXL 3.1 offerings. Integrating these silicon blocks will reinforce Marvell’s Ultra Accelerator Link (UALink) scale‑up switch team, enabling the company to deliver ultra‑low‑latency, high‑throughput connectivity for multi‑rack AI platforms. The move positions Marvell as a leading silicon supplier for AI data‑center infrastructure and deepens its relationships with hyperscalers.
Financially, Marvell expects XConn’s products to begin generating revenue in the second half of fiscal 2027 and to reach about $100 million in revenue by fiscal 2028. The timing aligns with Marvell’s forecasted growth in the data‑center segment, which saw a 78 % year‑over‑year increase in Q4 FY2025. The acquisition is therefore a strategic investment that will accelerate Marvell’s revenue trajectory in a high‑margin, high‑growth market.
The announcement was well received by investors, with Marvell’s shares rising around 4 % in early trading and Astera Labs’ shares falling about 7 %. The market reaction reflects the perceived competitive advantage the deal confers, as it strengthens Marvell’s position against rivals such as Broadcom and Nvidia and expands its total addressable market in AI infrastructure.
Matt Murphy, Marvell’s Chairman and CEO, said the combination “creates a compelling switching platform for accelerated infrastructure, advancing Marvell’s connectivity strategy for next‑generation AI and cloud data centers.” He added that XConn’s proven PCIe and CXL switch products, intellectual property, and engineering talent will accelerate Marvell’s UALink scale‑up switch team. Gerry Fan, XConn’s CEO, noted that the partnership will leverage Marvell’s SerDes technology and hyperscale customer relationships to deliver new waves of AI innovation.
The acquisition comes at a time when demand for high‑bandwidth, low‑latency connectivity is accelerating as AI workloads scale. Marvell’s Q4 FY2025 results—27 % revenue growth driven by a 78 % jump in the data‑center segment—demonstrate the company’s ability to capture this momentum. The XConn deal is a logical extension of that growth, adding complementary technology and talent that will help Marvell maintain pricing power and operational leverage in a competitive landscape.
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