Credo Technology Group Holding has agreed to buy DustPhotonics in a deal worth $750 million in cash and up to about 4.13 million shares of Credo stock.
The deal, which is expected to close in the second quarter of 2026, will bring together the high-speed connectivity company with a developer of SiPho PIC, or silicon photonics photonic integrated circuit technology, Credo said Monday.
Credo said the acquisition positions it to be a leader in artificial-intelligence connectivity technology. It agreed to pay $750 million in cash and about 920,000 shares up front, and said it may also pay incremental contingent consideration of up to about 3.21 million additional shares based on certain financial milestones being achieved.
Credo expects the transaction to be accretive to adjusted earnings per share in its 2027 fiscal year.
Shares of Credo closed up 12.4% in regular trading on Monday. Its stock recently was up 11% in overnight trading.
With the addition of DustPhotonics, Credo expects revenue from its optical transceiver division to be more than $500 million in fiscal year 2027.
Last month, Credo posted higher profit and tripled its revenue to $407 million in its fiscal third quarter.
