January 8, 2026 /SemiMedia/ — Marvell Technology said it has agreed to acquire networking equipment maker XConn Technologies for about $540 million, stepping up its investment in data centre hardware as competition around AI infrastructure intensifies.

Marvell expands data centre networking through XConn acquisition

The deal is expected to close in early 2026 and reflects Marvell’s effort to broaden its presence beyond custom AI chips into networking systems that link servers, accelerators and other components inside large-scale data centres.

Networking hardware becomes critical as AI workloads scale

XConn specialises in certain high-speed networking and switching products, areas that have become increasingly critical as AI workloads place heavier demands on data movement and latency. Marvell said the transaction will also bring XConn’s engineering team into the company, adding specialised expertise to its networking portfolio.

Roughly 60% of the purchase price will be paid in cash, with the remainder settled in shares valued using Marvell’s 20-day volume-weighted average price. To complete the deal, Marvell expects to issue around 2.5 million new shares.

Chief Executive Matt Murphy said combining the two companies would strengthen Marvell’s switching platform and help accelerate the build-out of infrastructure needed for next-generation AI and cloud data centres.

Marvell expects XConn’s products to begin contributing to revenue and profit in the second half of fiscal 2027, with sales from the acquired business projected to reach about $100 million in fiscal 2028.