Marvell Completes Acquisition of XConn

Marvell Technology, Inc. (NASDAQ: MRVL), a leader in data infrastructure semiconductor solutions, announced that it has completed its previously announced acquisition of XConn Technologies (“XConn”), a provider of advanced PCIe and CXL switching silicon.

The acquisition expands Marvell’s switching portfolio with XConn’s PCIe and CXL products and strengthens Marvell’s capabilities in scale-up connectivity for next-generation AI and cloud data center architectures.

XConn’s engineering team and technology will play a key role in advancing Marvell’s UALink scale-up switching roadmap as AI systems evolve toward larger, multi-rack deployments.

Expected Financial Impact

Marvell expects initial revenue contributions from XConn to begin in the third quarter of fiscal 2027, ramping 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 acquisition is expected to add approximately $25 million in annual non-GAAP operating expenses to Marvell’s current run rate. The completion of the acquisition reduced Marvell’s cash balance by $325 million, lowering expected interest income in future fiscal periods, which will result in a decrease in the Company’s Other Income by approximately $12 million on an annual basis. In addition, the Company issued equity to complete the acquisition which increased Marvell’s diluted weighted-average shares outstanding by approximately 2.7 million shares.