Credo Technology to Buy DustPhotonics for $1.3 B, Boosts 2027 Optical Revenue Guidance
Credo Technology will acquire DustPhotonics for $750 million cash plus 0.92 million shares and up to 3.21 million milestone shares, valuing the deal at $1.3 billion. The transaction secures 400G–3.2T silicon photonics IP and lifts Credo’s optical revenue guidance to over $500 million in fiscal 2027.
1. Deal Structure
Credo will acquire DustPhotonics for $750 million in cash plus 0.92 million shares and up to 3.21 million additional shares contingent on milestones, valuing the transaction at $1.3 billion.
2. Strategic Integration
The acquisition brings DustPhotonics’ 400G to 3.2T silicon photonics photonic integrated circuit technology in-house, enhancing Credo’s vertical integration for its ZeroFlap Optics platform and reducing reliance on external suppliers.
3. Financial Outlook
Credo now projects combined optical revenue to exceed $500 million in fiscal 2027 and expects the deal to be accretive to non-GAAP EPS in the same period, supporting long-term growth targets.