CRDO · Credo Technology Group Holding Ltd

Credo Technology Group Holding Ltd announced a definitive Share Purchase Agreement on April 13, 2026, to acquire DustPhotonics Ltd., an Israeli developer of Silicon Photonics Photonic Integrated Circuit (SiPho PIC) technology. The transaction involves upfront payment of $750 million in cash and approximately 0.92 million Credo ordinary shares, with potential additional consideration of up to 3.21 million shares tied to financial milestones. This acquisition accelerates Credo's expansion into silicon photonics, integrating DustPhotonics' SiPho PIC portfolio spanning 400G to 1.6T (with 3.2T roadmap) into its connectivity solutions for AI-driven networks. It creates a vertically integrated stack including SerDes, DSP, silicon photonics, and system integration, targeting Near Port Optics (NPO) and Co-Packaged Optics (CPO) for hyperscale AI clusters. The deal mitigates supply dependencies, enhances product development speed, and improves cost structure at scale. Credo anticipates its combined optical portfolio to generate over $500 million in fiscal 2027 revenue and the transaction to be accretive to non-GAAP EPS that year. The equity issuance relies on Securities Act exemptions under Section 4(a)(2), Rule 506 of Regulation D, and Regulation S, with customary piggyback rights. Closure is targeted for Q2 2026 pending approvals, positioning Credo to capture growth in the $6 billion SiPho PIC market by 2030 per LightCounting.