Marvell Technology, Inc. completed its acquisition of Santa Clara‑based XConn Technologies on February 10, 2026. The $540 million deal is structured as roughly 60 % cash and 40 % stock, with Marvell paying $325 million in cash and issuing 2.7 million shares to XConn shareholders.
The transaction reduces Marvell’s cash balance by $325 million and adds about $25 million in annual non‑GAAP operating expenses. Interest income is projected to decline by roughly $12 million per year, and the equity component of the deal dilutes the company’s diluted shares outstanding by 2.7 million shares.
Revenue from XConn is expected to begin contributing in the third quarter of fiscal 2027. Marvell projects an annualized run rate of $50 million by the fourth quarter of fiscal 2027 and $100 million in fiscal 2028, reflecting a staged ramp‑up as the new switching silicon is integrated into Marvell’s product lines.
The acquisition strengthens Marvell’s position in the AI and cloud data‑center market by adding advanced PCIe and CXL switching silicon that will feed into its Ultra Accelerator Link (UALink) roadmap. By expanding its CXL portfolio, Marvell aims to compete more directly with Nvidia and Broadcom and to offer a more comprehensive, open‑standard connectivity solution for multi‑rack AI clusters.
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.” Gerry Fan, XConn’s CEO, added that the partnership “brings together high‑port‑count PCIe 5 and PCIe 6 switching technology with Marvell’s SerDes expertise and hyperscale customer relationships, positioning both companies to drive new waves of AI innovation.”
The deal follows Marvell’s earlier acquisition of Tanzanite Silicon Solutions in 2022 and its announced purchase of Celestial AI, underscoring a broader strategy to build an end‑to‑end connectivity platform for hyperscale data centers. Industry analysts note that the growing demand for PCIe and CXL interconnects—critical for memory disaggregation and accelerated workloads—creates a tailwind for Marvell’s expanded product portfolio.
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