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California-based data infrastructure company Marvell has struck a deal to broaden its technology arsenal for the artificial intelligence era, agreeing to acquire XConn Technologies in a transaction valued at about $540 million.

The acquisition, announced Tuesday, is the latest move by Marvell to fortify its position as demand for AI-ready data center infrastructure accelerates like a rising tide across the semiconductor industry.

Deal Structure and Timeline

Marvell said the transaction is expected to close in early 2026, subject to customary conditions. The company plans to finance the purchase with a mix of 60% cash and 40% stock, according to its news release.

The deal was advised by Wilson Sonsini Goodrich & Rosati PC for Marvell and Goodwin Procter LLP for XConn.

XConn’s Role in AI Infrastructure

Founded in 2020, XConn has already worked with more than 20 customers, Marvell said, carving out a niche in high-speed switching technology that underpins modern AI systems.

Production-Ready Switching Technology

XConn’s PCIe 5 and CXL 2.0 switches — critical components for AI and cloud infrastructure — are already in production, giving Marvell an immediate foothold in technologies designed to move massive amounts of data at lightning speed.

Marvell expects XConn’s products to begin contributing to revenue in the second half of its 2027 fiscal year. By fiscal 2028, the company projects the acquisition will generate roughly $100 million in revenue and add to Marvell’s nonadjusted earnings.

Building Momentum After Celestial AI

The XConn deal follows Marvell’s blockbuster announcement in December that it would acquire Celestial AI for $3.25 billion, a price that could climb to $5.5 billion if certain product milestones are achieved. Together, the transactions signal an aggressive expansion strategy aimed squarely at the heart of AI and cloud data centers.

“This combination creates a compelling switching platform for accelerated infrastructure,” said Matt Murphy, Marvell’s chairman and CEO. He said the deal advances Marvell’s connectivity strategy for next-generation AI and cloud environments.

Murphy added that, when paired with the pending Celestial AI acquisition, Marvell will be positioned to deliver customers the performance, flexibility and architectural choice required as AI systems grow larger and more complex.