Marvell Technology has agreed the acquisition of XConn Technologies for approximately $540m, with the transaction comprising approximately 60% cash and 40% stock.

The acquisition is set to strengthen Marvell’s portfolio in PCIe and CXL switching products, with the integration of XConn’s technology and engineering team expected to support the company’s data centre connectivity strategy, particularly in AI infrastructure.

Marvell will issue roughly 2.5 million common shares as part of the stock component, valued based on a 20-day volume weighted average price.

The companies anticipate closing the transaction in early 2026, subject to regulatory approvals and customary conditions.

XConn currently supplies PCIe 5 and CXL 2.0 switches to over 20 customers and has started sampling its PCIe 6 and CXL 3.1 products.

Marvell projects that revenue from XConn’s CXL and PCIe switch lines will begin contributing in the second half of its fiscal year 2027, with expectations for annual revenue from these products to reach around $100m in fiscal year 2028.

The acquisition is intended to enhance Marvell’s position in addressing demand for high-bandwidth, low-latency connectivity solutions required by evolving multi-rack data centre platforms supporting AI workloads.

The deal will also augment Marvell’s Ultra Accelerator Link development efforts by adding experienced engineers from XConn with expertise in high-performance switching.

UALink, recently established as an open industry standard, is designed to provide efficient scale-up connectivity between multiple accelerators in data centres.

By combining assets and personnel, Marvell aims to increase its ability to serve customers seeking advanced infrastructure solutions using PCIe and CXL technologies.

In addition to expanding technical capacity, Marvell expects the integration of XConn’s portfolio will broaden its addressable market for both traditional computing architecture and accelerated memory disaggregation requirements.

Marvell chairman and CEO Matt Murphy said: “With XConn, we add proven PCIe and CXL switch products, IP, and engineering talent to expand our UALink scale-up switch team.

“Combined with our pending acquisition of Celestial AI, we will be well positioned to deliver customers the performance, flexibility, and architectural choice they need as AI systems grow in size and complexity.”

The combination of Marvell’s controllers with XConn’s switching products will establish a comprehensive offering for customers operating demanding AI applications.

XConn CEO Gerry Fan said: “We share a common vision for high-speed connectivity as the foundation of modern data centers, and we look forward to working together to help customers drive new waves of AI innovation.”

Wilson Sonsini Goodrich & Rosati is serving as legal counsel to Marvell.

Goodwin Procter is acting as legal advisor to XConn, with Evercore serving as XConn’s exclusive financial advisor.