WASHINGTON (dpa-AFX) - Marvell Technology (MRVL) on Tuesday said it has agreed to buy Celestial AI in a deal valued at about $3.25 billion, marking a major move to strengthen its position in next-generation AI data-center connectivity.
Marvell expects Celestial AI to contribute $500 million in annualized revenue by the fourth quarter of fiscal year 2028, and double to a $1 billion run rate by the following year's fourth quarter.
The transaction includes cash, stock, and up to $2.25 billion in contingent equity tied to revenue milestones, and is expected to close in early 2026 pending regulatory approvals.
'The acquisition of Celestial AI is a transformative step in Marvell's evolution and expands our leadership in AI connectivity, as scale-up becomes the next frontier in AI infrastructure,' said Matt Murphy, Chairman and CEO of Marvell. 'This builds on our technology leadership, broadens our addressable market in scale-up connectivity, and accelerates our roadmap to deliver the industry's most complete connectivity platform for AI and cloud customers.'
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