Credo Technology Group agreed on 13 April to acquire DustPhotonics, an Israeli developer of silicon photonics chips for high-speed optical transceivers, for US$750m in cash plus about 0.92m Credo shares.
Why Credo Technology Group Holding Ltd is buying DustPhotonics
Credo said DustPhotonics' photonic integrated circuits, spanning 400G to 1.6T with a roadmap to 3.2T, are a foundational component of its ZeroFlap optical transceivers, and that owning the technology would reduce supply dependence and cut costs at volume. It expects its combined optical portfolio to generate more than US$500m of revenue in fiscal 2027.
“Joining Credo is the natural next step for DustPhotonics.”
Deal terms and financing
Upfront consideration is US$750m in cash and about 0.92m shares, with up to about 3.21m further shares payable on financial milestones. Globes reported that the deal is worth at least US$850m and potentially up to US$1.3bn including milestones.
Regulatory approvals and timing
Closing was expected in the second calendar quarter of 2026, subject to customary conditions and regulatory approvals. Credo announced on 28 May 2026 that the acquisition had completed.
Market context
DustPhotonics was founded in 2017 and has about 70 employees. Its chairman and first investor is Avigdor Willenz, a prominent figure in Israel's chip industry. Its chips are deployed in transceivers at hyperscale AI clusters and are in design for near-packaged and co-packaged optics.
