Credo Technology Group Holding Ltd(NASDAQ:CRDO) shares are trading higher in Monday’s after-hours session after the company announced an agreement to acquire DustPhotonics.
- Credo Technology Group shares are trending higher.
Credo Accelerates Expansion Into Silicon Photonics, Optical Connectivity
After the market close on Monday, Credo announced it entered into a definitive agreement to acquire DustPhotonics, which develops Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology for optical transceivers.
Credo said the move will bring industry-leading Silicon Photonics PIC technology in-house, expanding the company’s addressable market and deepening its optical interconnect portfolio across the AI infrastructure buildout.
The transaction includes an upfront consideration of $750 million in cash and approximately 0.92 CRDO shares. Credo may also pay incremental contingent consideration of up to approximately 3.21 million shares based on the achievement of certain financial milestones.
“Combining forces with DustPhotonics marks a defining step in Credo’s strategy to lead across the full spectrum of AI connectivity. We’ve built a strong position in high-speed electrical solutions, and this move decisively expands that leadership into Silicon Photonics with best-in-class PIC technology that complements our ZeroFlap Optical Transceivers and DSP portfolio,” said William Brennan, chairman, president and CEO of Credo.
With the addition of DustPhotonics, the company expects its combined portfolio of ZeroFlap Optical Transceivers, Optical DSPs and Silicon Photonics products to generate more than $500 million in optical revenue in fiscal 2027.
The transaction is expected to close in the second quarter of 2026. Credo expects the transaction to be accretive to adjusted earnings per share in fiscal 2027.
CRDO Shares Rise After The Bell
CRDO Price Action: Credo Technology shares were up 6.43% in after-hours, trading at approximately $143 at the time of publication on Monday, per Benzinga Pro.