Marvell Technology is acquiring XConn Technologies for $540 million (€462 million). The acquisition is intended to strengthen Marvell’s position in PCIe and CXL switching for AI data centers. XConn brings advanced switch products and engineering expertise to UALink technology.
With this acquisition, Marvell is focusing on scalability in AI infrastructure. As AI workloads grow, data center designs are evolving from single-rack to multi-rack configurations. These require high-bandwidth, ultra-low latency scale-up fabrics. UALink, a new open industry standard, is designed to enable efficient communication between multiple accelerators. XConn’s expertise in this area fits in seamlessly.
The chipmaker is paying for the acquisition with 60 percent cash and 40 percent stock. The stock component amounts to approximately 2.5 million Marvell shares, based on the 20-day average share price. The transaction is expected to close in early 2026, subject to customary conditions and regulatory approvals.
Expansion of CXL and PCIe portfolio
With XConn, Marvell adds proven PCIe and CXL switch products to its portfolio. XConn already has PCIe 5 and CXL 2.0 switches in production, while PCIe 6 and CXL 3.1 switches are currently being sampled with customers. The company works with more than 20 customers.
Marvell expects the XConn CXL and PCIe switching products to start generating revenue in the second half of fiscal year 2027. At that point, XConn is expected to become profitable for Marvell’s non-GAAP figures, reaching approximately $100 million in revenue in fiscal 2028.
Broader acquisition strategy
Marvell announced the acquisition of Celestial AI for $3.25 billionin December 2025. That acquisition is expected to accelerate scale-up connectivity for data centers using Photonic Fabric optical interconnect technology.
Gerry Fan, CEO of XConn, is optimistic about the collaboration. “Marvell brings cutting-edge SerDes technology, a leading process roadmap, deep hyperscale customer relationships, and global scale,” said Fan. “We share a common vision for high-speed connectivity as the foundation of modern data centers.”
PCIe switching has long been fundamental to traditional computer architectures and is now becoming a critical building block for accelerated infrastructure. At the same time, CXL is becoming essential for memory disaggregation in modern data centers. The combination of Marvell CXL memory expansion controllers with XConn CXL switches is expected to deliver the most comprehensive CXL portfolio in the industry.