Marvell Technology has signed an agreement to acquire XConn Technologies, strengthening its position in high-performance data center connectivity and AI infrastructure.
The $540 million deal expands Marvell’s switching portfolio with XConn’s PCIe and CXL switching silicon while significantly enhancing Marvell’s Ultra Accelerator Link, or UALink, scale-up switch capabilities through added engineering expertise.
As AI workloads move toward large, multi-rack deployments, demand is rising for ultra-low latency, high-bandwidth scale-up fabrics that can efficiently connect large numbers of accelerators. UALink, an open industry standard built on PCIe ecosystem innovations, is designed to meet these next-generation requirements by enabling multiple XPUs to function as a unified system.
The acquisition also broadens Marvell’s addressable market by strengthening its presence in PCIe and CXL switching, which are becoming critical for accelerated computing and memory disaggregation in modern data centers. By combining Marvell’s CXL memory expansion controllers with XConn’s CXL switches, the company aims to offer the industry’s most comprehensive CXL portfolio for AI workloads.
XConn currently works with more than 20 customers, with PCIe 5 and CXL 2.0 products already in production and PCIe 6 and CXL 3.1 solutions sampling. Marvell expects XConn’s products to contribute revenue starting in the second half of fiscal 2027, becoming accretive to non-GAAP earnings and reaching about $100 million in revenue in fiscal 2028.
The $540 million transaction, funded through a mix of cash and stock, is expected to close in early calendar 2026.
Other deals
Celestial AI Acquisition
Marvell agreed to acquire Celestial AI in a strategic deal valued at about $3.25 billion in cash and stock. Celestial AI brings advanced photonic fabric technology designed for next-generation AI data centers, enabling optical interconnects with ultra-high bandwidth and low latency. This acquisition is intended to accelerate Marvell’s leadership in scale-up AI connectivity and optical interconnect solutions for multi-rack and hyperscaler systems. Marvell expects revenue contributions from Celestial AI beginning in the second half of fiscal 2028 and to reach a significant run rate by fiscal 2029.
Sale of Automotive Ethernet Business (2025)
In April 2025, Marvell agreed to sell its Automotive Ethernet business — including the Brightlane portfolio — to Infineon Technologies in an all-cash deal valued at $2.5 billion. This transaction closed in mid-August 2025 and aligned with Marvell’s strategic shift toward data center and AI markets while divesting a unit seen as less central to its long-term focus.
Innovium Acquisition
Marvell completed the acquisition of Innovium, a cloud-optimized Ethernet switching silicon provider, in 2021. The deal expanded Marvell’s portfolio in networking solutions for cloud and edge data centers and strengthened its position in high-performance switch silicon markets used by hyperscale customers.
Tanzanite Silicon Solutions
Earlier, in 2022, Marvell acquired Tanzanite Silicon Solutions, enhancing its Compute Express Link (CXL) technology capabilities for cloud data centers. This helped Marvell build a broader end-to-end CXL portfolio to support modern, memory-centric architectures.
RAJANI BABURAJAN
