Marvell Technology, a data infrastructure semiconductor solutions provider, announced it has completed its previously announced acquisition of XConn Technologies, a provider of advanced PCIe and CXL switching silicon.
Marvell said the deal expands its switching portfolio with XConn’s PCIe and CXL products and is intended to strengthen Marvell’s scale-up connectivity capabilities for next-generation AI and cloud data center architectures. The company also said XConn’s engineering team and technology will be used to advance Marvell’s UALink scale-up switching roadmap as AI systems move toward larger, multi-rack deployments.
Marvell outlined expected financial impacts, saying initial revenue contributions from XConn are expected to begin in the third quarter of fiscal 2027 and ramp to a $50 million annualized run rate in the fourth quarter of fiscal 2027. In fiscal 2028, Marvell expects XConn to contribute $100 million in revenue.
The company said the acquisition is expected to add about $25 million in annual non-GAAP operating expenses to Marvell’s current run rate. Marvell also said the transaction reduced its cash balance by $325 million, which it expects will lower interest income and decrease other income by about $12 million annually. In addition, Marvell said it issued equity to complete the acquisition, increasing the diluted weighted average shares outstanding by about 2.7 million.
