Marvell Finalizes $325M XConn Deal, Boosts FY28 Revenue Estimate by $100M
Marvell completed its $325 million XConn Technologies acquisition to strengthen PCIe and CXL switching silicon, expecting a $50 million annualized revenue run rate by fiscal Q4 2027. Stifel raised its FY28 revenue forecast by $100 million while adjusting FY27 non-GAAP EPS from $3.41 to $3.37 and maintaining FY28 EPS at $4.90.
1. Completed XConn Technologies Acquisition
Marvell finalized its acquisition of XConn Technologies for $325 million, integrating advanced PCIe and CXL switching silicon to reinforce its UALink data infrastructure solutions.
2. Updated Financial Model and Analyst Rating
Stifel reiterated a Buy rating with a $114 price target after incorporating the XConn deal, noting limited near-term EPS impact but highlighting long-term synergy potential.
3. Impact on FY27 and FY28 Projections
The firm adjusted its FY27 non-GAAP EPS forecast from $3.41 to $3.37, increased FY27 operating expenses by $25 million, reduced Other Income by $12 million, and raised its FY28 revenue estimate by $100 million while holding FY28 EPS at $4.90.
4. Longer-Term Revenue and EPS Outlook
Marvell expects initial XConn revenue contributions in fiscal Q3 2027, accelerating to a $50 million annualized run rate by fiscal Q4 2027, and bumped its FY29 revenue forecast from $17.58 billion to $17.73 billion with EPS unchanged at $6.68.