Credo Technology Group Holding Ltd. has announced a definitive agreement to acquire Israeli silicon photonics startup DustPhotonics Ltd. for up to $1.3 billion. The deal involves $750 million in cash and approximately $123 million in shares at closing, with potential for an additional $430 million in shares based on financial milestones.
DustPhotonics, founded in 2017, specializes in Silicon Photonics Photonic Integrated Circuit (PIC) technology for high-speed optical transceivers, supporting speeds from 400G up to 1.6T and with a roadmap to 3.2T. The company employs around 70 engineers focused on photonic integration.
Their fabless approach integrates key optical functions onto a single chip, reducing complexity and costs for advanced port speeds. DustPhotonics' PICs are deployed in AI clusters and are being developed for near-port and co-packaged optics applications to enhance efficiency.
This acquisition integrates DustPhotonics' SiPho PIC technology into Credo's portfolio, complementing its existing SerDes and digital signal processing products. The combined capabilities will span SerDes, DSP, Silicon Photonics, and system integration for both electrical and optical interconnects in AI networks.
"Combining forces with DustPhotonics marks a defining step in Credo’s strategy to lead across the full spectrum of AI connectivity," stated William Brennan, CEO of Credo Technology. "This move decisively expands our leadership into Silicon Photonics with best-in-class PIC technology."
The transaction is anticipated to close in the second quarter, pending regulatory approvals. Credo shares saw a significant rise following the acquisition announcement. DustPhotonics had previously raised over $100 million in venture capital.