Marvell Technology recently announced a major step in its growth strategy. The company has officially completed its Acquisition of Celestial AI. This deal was valued at $3.25 billion in upfront cash and stock. It integrates advanced optical interconnect technology into the Marvell portfolio. Celestial AI is known for its innovative Photonic Fabric platform. This technology supports high-bandwidth and low-latency connectivity for large-scale AI. Marvell aims to strengthen its leadership in the cloud data center market.
The Acquisition of Celestial AI brings a talented team into Marvell’s Data Center Group. This integration will help create more power-efficient solutions for global customers. The size and complexity of AI systems are continuously increasing. Therefore, innovative connectivity solutions are a critical requirement. Marvell expects to realize revenue from the deal in the second half of fiscal 2028. The company projects a $500 million annualized revenue run rate by that time. Revenue could double to $1 billion by the end of fiscal 2029.
“Celestial AI will enable us to advance Marvell’s long-term strategy to deliver the industry’s most comprehensive data infrastructure platforms,” said Matt Murphy, Chairman and CEO of Marvell.“The addition of Celestial AI’s Photonic Fabric technology platform complements Marvell’s existing portfolio.”
The financial terms involved a $1 billion reduction in Marvell’s cash balance. Additionally, the company issued approximately 27 million shares to complete the transaction. This strategic move ensures Marvell stays ahead in the emerging scale-up interconnect market. It provides the necessary tools to address demanding next-generation architectures.
Expanding Connectivity for Next-Generation AI
“As AI systems continue to scale in size and complexity, customers require innovative connectivity solutions,” added Matt Murphy during the announcement.“We are excited to welcome the talented team from Celestial AI to Marvell.”
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News Source: Businesswire.com
