Marvell to acquire Celestial AI in $3.25bn deal

BY Fraser Tennant

In a deal that accelerates its connectivity strategy for next-generation artificial intelligence (AI) and cloud data centres, chipmaker Marvell Technology is to acquire semiconductor start-up Celestial AI in a transaction valued at approximately $3.25bn.

Under the terms of the definitive agreement, Celestial AI will receive $1bn in cash and 27.2m shares of Marvell common stock worth $2.25bn – based on the average volume weighted average price for the 10 trading days ending the second day prior to signing.

The deal to acquire Celestial AI will allow Marvell to tap into the start-up’s work on photonics, which uses light rather than electrical signals to create connections between AI chips and memory chips – an area in which Marvell competes with Broadcom and the world’s most valuable company, Nvidia.

Combined with its existing leadership in scale-out and scale-across connectivity, Marvell expects the combination with Celestial AI to result in the industry’s most comprehensive provider of high-bandwidth, low-power, low-latency solutions for next-generation data centre connectivity.

“The acquisition of Celestial AI is a transformative step in Marvell’s evolution and expands our leadership in AI connectivity, as scale-up becomes the next frontier in AI infrastructure,” said Matt Murphy, chairman and chief executive of Marvell. “This builds on our technology leadership, broadens our addressable market in scale-up connectivity, and accelerates our roadmap to deliver the industry’s most complete connectivity platform for AI and cloud customers.”

Founded in 2020, Celestial AI is the creator of the ‘photonic fabric’, an optical interconnect technology platform for AI computing systems. The photonic fabric provides the foundational technology for data centre computing, networking and memory systems to enable advancements in AI with sustainable and profitable business models.

“Marvell is the ideal home for our Photonic Fabric, with the scale, customer relationships and connectivity leadership to take this platform into high-volume production,” said David Lazovsky, co-founder and chief executive of Celestial AI. “Together with Marvell’s scale-up switching strategy, we’re excited to accelerate the transition to optical scale-up interconnect and expand what next-generation AI infrastructure can achieve.”

The transaction is expected to close in the first quarter of 2026, subject to customary closing conditions and regulatory approvals.

Marvell expects meaningful revenue contributions from Celestial AI to begin in the second half of 2028, reaching a $500m annualised run rate in the fourth quarter of 2028, doubling to a $1bn dollar run rate by the fourth quarter of 2029.

News: Marvell to buy chip startup Celestial AI for $3.25 billion, bullish on growth next year

Goldman Sachs announces $2bn Innovator deal

BY Richard Summerfield

Goldman Sachs has agreed to acquire Innovator Capital Management, a provider of defined-outcome exchange-traded funds (ETFs) in a cash and stock deal worth around $2bn. The deal marks Goldman’s latest attempt to bolster its asset management division.

According to Goldman, the acquisition, which is expected to close in the second quarter of 2026, will boost its ETF offerings in a fast-growing corner of the investing world. Goldman notes that the acquisition strategically expands the firm’s more durable revenue and reinforces its commitment to offering institutional and individual investors comprehensive solutions.

Upon completion of the deal, Innovator’s 60-plus employees will join Goldman’s asset management division. Bruce Bond, co-founder and chief executive of Innovator, along with other key executives, will join Goldman Sachs Asset Management.

“Active ETFs are dynamic, transformative, and have been one of the fastest-growing segments in today’s public investment landscape,” said David Solomon, chairman and chief executive of Goldman Sachs. “By acquiring Innovator, Goldman Sachs will expand access to modern, world-class investment products for investor portfolios. Innovator’s reputation for innovation and leadership in defined outcome solutions complements our mission to enhance the client experience with sophisticated strategies that seek to deliver targeted, defined outcomes for investors.”

“This transaction is a pivotal milestone for our business,” said Mr Bond. “Goldman Sachs has a long history of discerning emerging trends and important directional shifts within the asset management industry. We are excited to deliver world-class investment solutions to clients within the ETF framework and expand our business in this high-growth, sector-leading category. These synergies, among numerous others, make Goldman Sachs an ideal partner for us.”

According to a statement announcing the deal, citing data by Morningstar, global active ETF assets under management are at $1.6 trillion, growing at a 47 percent compound annual growth rate (CAGR) since 2020 as investors increasingly access public markets through the ETF wrapper.

Having grown at 66 percent CAGR since 20203, defined outcome ETFs are a key component of the rapidly growing active ETF market, driven by the objective to deliver innovative structured strategies in accessible formats. Investors are increasingly using defined outcome ETFs to add a broad and customisable range of objectives to their portfolios that meet their risk control needs and performance objectives.

Innovator has been led by Mr Bond since he co-founded the firm with John Southard in 2017. The firm launched the first defined-outcome ETFs in 2018, and is currently the second-largest provider of buffers behind asset manager First Trust.

Goldman has made a series of deals in the past three months, including the acquisition of venture capital investor Industry Ventures and a $1bn investment in T. Rowe Price Group Inc.

News: Goldman Sachs to buy ETF sponsor Innovator in $2 billion cash-and-stock deal

GE HealthCare to acquire Intelerad in $2.3bn deal

BY Richard Summerfield

GE HealthCare has announced it has agreed to acquire medical imaging software provider Intelerad in a deal worth $2.3bn, as part of wider aims to create a fully-connected, cloud-first imaging ecosystem and to triple its cloud-enabled product offering by 2028.

The deal is expected to be completed in the first half of 2026, subject to customary closing conditions and regulatory approvals. GE HealthCare intends to fund the transaction with cash on hand and proceeds from debt financing. 

“As hospital and ambulatory care providers face increased demand for imaging and rising patient volumes, they are looking to simplify and unify their workflows,” said Peter Arduini, president and chief executive of GE HealthCare. “Our acquisition of Intelerad will bring additional cloud-enabled and intelligent solutions in radiology and cardiology into our portfolio of products and extend our capabilities into outpatient networks, enabling care teams to be more efficient, improve outcomes, and deliver precision care for patients globally. As a result, we expect to accelerate our growth in SaaS products and recurring revenues as we take another evolutionary step to grow into a healthcare solutions provider.”

“Intelerad is an outstanding strategic fit and is a pioneer in cloud-based imaging software, with a strong portfolio of world-class solutions across care settings. By combining GE HealthCare’s medical device and AI competence at global scale with Intelerad’s enterprise cloud and imaging expertise, we will be even better positioned to meet the evolving needs of healthcare providers, simplify complex workflows, and drive digital innovation across the industry,” said Roland Rott, president and chief executive of imaging at GE HealthCare.  

“Joining GE HealthCare marks an exciting new chapter for Intelerad,” said Jordan Bazinsky, chief executive of Intelerad. “GE HealthCare’s global scale and extensive relationships with key decision makers across hospital systems will fuel the expansion of our connected imaging software offering.  Together, we look forward to advancing digital innovation in healthcare and delivering more integrated AI-enabled solutions that empower our customers to tackle their greatest challenges.”

The deal will see Hg Capital, Intelerad’s majority shareholder, and TA Associates, an investor in the company since 2022, fully exit their investments. During Hg’s ownership, Intelerad significantly expanded its business, growing revenue by more than 3.5 times and completing eight strategic acquisitions. The company now serves over 1500 customers worldwide, supporting more than 230 million medical exams annually and managing 8 billion medical images. Hg is estimated to have invested around $500m into Intelerad in January 2020, with unconfirmed sources placing the total value of the investment at around $650m.

According to Hector Guinness and Laura Grattan, partners at Hg, the firm’s partnership with Intelerad was “an outstanding journey of innovation, growth, and leadership in healthcare technology”.

News: Hg exits Intelerad in $2.3bn sale to GE HealthCare

Veolia acquires Enviri’s Clean Earth in $3bn deal

BY Fraser Tennant

In its biggest and most transformative acquisition since 2022, French energy services group Veolia is to acquire US-based hazardous waste company Clean Earth from environmental company Enviri for $3bn.

Under the terms of the definitive agreement, Enviri shareholders will receive a cash consideration of $14.50 to $16.50 per share in the transaction, which has been unanimously approved by the boards of directors of both Enviri and Veolia.  

Once complete, the transaction will double Veolia’s US hazardous waste footprint to create a number two player in a fast-growing sector, with a nationwide operational platform, wider market coverage and an advanced portfolio of technical capabilities.

The acquisition also represents a significant boost of Veolia’s anchoring in the US and in hazardous waste activities, both identified as key priorities as part of the company’s GreenUp strategic plan.

“In line with our GreenUp focus on growth boosters, this acquisition is a major step in the transformation and strengthening of our financial profile,” said Estelle Brachlianoff, chief executive of Veolia. “It allows us to unlock the full value potential of our US hazardous waste activities and to double our size on this critical fast growing sector.”

The hazardous waste treatment sector is particularly robust, especially in the US, where it is outperforming a challenging economic environment and is considered an essential service for key industries, particularly those undergoing transformation or reshoring production, such as advanced manufacturing, semiconductors, clean-energy production, healthcare and pharmaceuticals.

“This agreement is the result of a comprehensive strategic alternatives process to maximise value for our shareholders and realise the sum of the parts valuation of our businesses,” said Nick Grasberger, chairman and chief executive of Enviri. “This transaction is a testament to our team’s dedication and leadership, and we are confident that the business and its employees will prosper as part of Veolia.”

The transaction is expected to close in the middle 2026, subject to the satisfaction of customary conditions, including approval by Enviri’s shareholders and receipt of necessary authorisations and regulatory approvals.

“The continued transformation of our portfolio enhances the growth profile and strength of our group, uniquely positioned to tackle the sustained demand for environmental security,” said Ms Brachlianoff. “This transaction offers a solid value creation potential with significant synergies.”

News: France's Veolia to buy hazardous waste group Clean Earth for $3 billion

Coatings giants AkzoNobel and Axalta agree $25bn merger

BY Fraser Tennant

In an all-stock merger of equals that will create a premier global coatings company, AkzoNobel and Axalta Coating Systems are to combine with an enterprise value of approximately $25bn.

Under the terms of the definitive agreement, which has been unanimously approved by the AkzoNobel supervisory board, the AkzoNobel board of management and the Axalta board of directors, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned.

The combination brings together two industry leaders with complementary portfolios of highly regarded brands to better serve customers across key end markets and enhance value for shareholders, employees and other stakeholders.

Anchored in both companies’ proud histories and broad expertise, the combined business will have a highly attractive financial profile, industry-leading innovation capabilities and a balanced global footprint spanning over 160 countries to bring global capabilities to local customers.

“We are excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry,” said Greg Poux-Guillaume, chief executive and chairman of the board of management of AkzoNobel. “This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential.”

With attractive margins and robust cash flow generation, the combined company is expected to drive identified and actionable run-rate synergies of approximately $600m – 90 percent of which are expected to be achieved within the first three years following the close of the transaction.

“We are pleased to enter into this transaction with AkzoNobel and join our best-in-class platforms to enhance innovation, develop new capabilities and further strengthen customer relationships,” said Chris Villavarayan, chief executive and president of Axalta. “As our industry continues to grow and evolve, this combination with AkzoNobel enables us to do the same, with a sharper competitive edge and new avenues and opportunities for growth.”

The transaction is expected to close in late 2026 to early 2027, subject to approval by shareholders, the receipt of requisite regulatory approvals and other customary closing conditions.

“Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry,” stated Mr Villavarayan. “Like AkzoNobel, we value our people as our greatest asset, and we are excited to unite our rich, innovation-focused cultures.”

News: AkzoNobel, Axalta to merge creating $25 billion paint giant