Marvell Acquires XConn for $540 Million to Boost AI Infrastructure

• The deal consists of approximately 60% cash and 40% stock, with Marvell issuing around 2.5 million shares valued at its 20-day volume-weighted average price
• XConn products are projected to contribute about $100 million in revenue by fiscal 2028, with sales and profit contributions beginning in the second half of fiscal 2027
• The acquisition adds engineering expertise in networking devices as Marvell competes with Broadcom and Nvidia in the AI data center switching and connectivity market

Marvell Acquires XConn for $540 Million to Strengthen AI Data Center Position

Marvell Technology announced on January 6 the acquisition of XConn Technologies for approximately $540 million in a strategic move to enhance its AI infrastructure capabilities. The deal positions Marvell to better compete in the rapidly expanding data center networking market dominated by players like Broadcom and Nvidia.

Transaction Details:

• Deal structure: 60% cash, 40% stock (valued at Marvell's 20-day volume-weighted average price)
• Marvell will issue approximately 2.5 million shares
• Expected closing: early 2026
• Marvell's current market valuation: $76.52 billion

Strategic Rationale:

XConn specializes in networking equipment critical for AI data centers, particularly switching technology that connects hardware across servers and determines data processing speeds. The acquisition expands Marvell's networking portfolio and adds engineering talent with specialized expertise in networking devices. CEO Matt Murphy stated the combination creates "a compelling switching platform for accelerated infrastructure" for next-generation AI and cloud data centers.

Financial Projections:

• XConn products expected to contribute to sales and profit in second half of fiscal 2027
• Projected revenue from XConn: approximately $100 million in fiscal 2028
• Marvell's total expected fiscal 2027 revenue: $12.75 billion (per LSEG analyst estimates)

Market Context:

The acquisition reflects intensifying competition in AI infrastructure as chipmakers race to capture growing demand for data center equipment. Networking capabilities are increasingly crucial as companies build out AI computing capacity, with switching technology playing a vital role in data transfer efficiency across data centers.