Marvell to Acquire XConn Technologies for $540 Million to Expand AI Connectivity

Strengthening AI Data Center Infrastructure

Marvell Technology has entered a definitive agreement to acquire XConn Technologies for approximately $540 million in a cash and stock transaction. This strategic move aims to bolster Marvell's leadership in the AI data center market by adding advanced PCIe and CXL switching silicon to its portfolio. The transaction is expected to close in early 2026, subject to regulatory approvals and customary closing conditions.

The acquisition specifically strengthens the development of the Ultra Accelerator Link, or UALink, which is an open-standard connectivity fabric. UALink is designed to link large numbers of AI accelerators efficiently across multi-rack configurations. By integrating XConn’s specialized engineering talent, Marvell intends to accelerate the deployment of these next-generation scale-up switches.

XConn is widely recognized for its Apollo family of switches, which are the first to support both PCIe and CXL protocols on a single chip. This hybrid architecture allows data center operators to dynamically manage standard connectivity and memory pooling. Such versatility is essential as modern AI workloads require significantly more memory than individual chips can provide on their own.

Marvell anticipates that XConn products will begin contributing to revenue in the second half of fiscal year 2027. The company projects the new business unit will ramp to roughly $100 million in revenue by fiscal 2028. This move follows Marvell’s recent $3.25 billion acquisition of Celestial AI to create a comprehensive connectivity fabric. Matt Murphy, chairman and CEO of Marvell, noted that the combination creates a compelling switching platform for modern cloud infrastructure. He emphasized that the deal provides customers with the performance and architectural flexibility needed for increasingly complex AI clusters. XConn CEO Gerry Fan added that Marvell’s global scale will help push their technology into new waves of data center innovation.