Credo agrees to buy silicon photonics chipmaker DustPhotonics for $750 million cash plus shares

Credo agreed to acquire DustPhotonics, an Israeli silicon photonics developer, for $750 million in cash and about 0.92 million Credo shares upfront. Credo may pay up to about 3.21 million more shares if financial milestones are met. The company expects the deal to add to non-GAAP earnings per share in fiscal 2027 and to bring its optical revenue above $500 million in that year.

• Upfront consideration: $750 million cash plus about 0.92 million Credo shares
• Contingent consideration: up to about 3.21 million shares on financial milestones
• Expected to be accretive to non-GAAP EPS in fiscal 2027
• Credo expects combined ZeroFlap optics, optical DSP and silicon photonics revenue above $500 million in fiscal 2027
• Closing expected in the second quarter of calendar 2026, subject to conditions and approvals