Credo to Acquire DustPhotonics for $1.3B, Accelerating AI Data Center Expansion

Credo Technology Group (NASDAQ: CRDO) agreed to acquire Israel-based Silicon Photonics specialist DustPhotonics.

The initial consideration includes $750 million in cash and approximately 0.92 million shares of Credo common stock. Contingent payments of up to 3.21 million shares depend on achieving specific financial milestones. The total transaction value could reach approximately $1.3 billion.

The acquisition targets the optical connectivity market essential for next-generation AI clusters and hyperscale data centers. Credo aims to vertically integrate DustPhotonics' technology to secure its supply chain and capture demand for high-speed data transmission.

The transaction is expected to close in the second quarter of 2026. Management projects the deal will be accretive to non-GAAP earnings per share in fiscal 2027.