Marvell Technology Acquires XConn Technologies for $540 Million to Enhance AI Infrastructure
Marvell Technology has acquired XConn Technologies for approximately $540 million, with the aim of enhancing its high-performance connectivity capabilities for data centers, particularly in AI infrastructure. The deal, expected to close in early 2026, is projected to contribute around $100 million in revenue by fiscal year 2028, while Marvell also announced a $5 billion share buyback program to counteract dilution effects. Analysts view the acquisition favorably, emphasizing its importance for maintaining competitiveness against rivals like Broadcom.
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Marvell Technology announced the acquisition of XConn Technologies for approximately $540 million, with 60% in cash and 40% in stock. This strategic move aims to enhance Marvell's capabilities in high-performance connectivity for data centers, particularly in PCIe and CXL-switching technologies critical for scaling AI clusters.
The transaction is expected to close in early 2026, with revenue contributions anticipated to reach around $100 million by fiscal year 2028. Concurrently, Marvell is executing a $5 billion share buyback program approved on September 24, 2025, to mitigate dilution effects from the acquisition.
The company reported a record revenue of $2.075 billion for Q3 of fiscal year 2026, driven by a 38% growth in the datacenter segment. Analysts view the acquisition positively, highlighting its necessity in maintaining competitiveness against rivals like Broadcom.
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