TLDR
- Navitas Semiconductor rose 5% in pre-market trading after announcing a deal to acquire Claros, Inc. for up to $232.8 million.
- The deal adds vertical power delivery and integrated voltage regulator technology to Navitas’ AI data center power portfolio.
- Approximately $216 million will be paid at closing via cash and Class A common stock, with the rest tied to milestones.
- The acquisition is expected to more than double Navitas’ 2030 serviceable addressable market to over $8 billion.
- Navitas said its profitability timeline remains unchanged following the deal.
Navitas Semiconductor (NVTS) jumped 5% in pre-market trading on Tuesday after announcing it had signed a definitive agreement to acquire Claros, Inc. for up to approximately $232.8 million.
Navitas Semiconductor Corp, NVTS
Claros, founded in 2024, develops vertical power delivery (VPD) and integrated voltage regulator (IVR) technology aimed at AI data centers. The technology places voltage conversion directly next to the chip, rather than routing power across a circuit board, which improves efficiency.
At closing, Navitas will pay around $216 million through a mix of cash and Class A common stock. The remaining consideration is contingent on Claros hitting specific business milestones over the two years after the deal closes.
Certain Claros employees could also receive up to $28.9 million in performance-based stock compensation tied to those same milestones.
Both boards unanimously approved the transaction. Navitas expects the deal to close before the end of 2026, subject to regulatory approvals and standard closing conditions.
Navitas held $557.4 million in cash and equivalents as of June 30, 2026, giving it a comfortable runway to fund the cash portion of the deal.
Market More Than Doubles
The company said the acquisition would more than double its identified 2030 serviceable addressable market from under $4 billion to over $8 billion. Claros’ VPD and IVR markets alone add at least $3.5 billion to that figure.
Navitas said it expects Claros to become an additional growth driver from 2028 or 2029 onward. Revenue acceleration and margin expansion are possible outcomes, according to the company.
Crucially, Navitas said the deal does not change its short- to mid-term financial model under its Navitas 2.0 transformation plan, and the profitability timeline stays the same. That detail appeared to reassure investors.
“The future of AI depends on delivering thousands of amps to increasingly power-hungry processors with unprecedented speed and precision,” said CEO Chris Allexandre.
Broader Context
The Claros deal extends Navitas’ reach across the full AI power chain, from the grid all the way down to GPUs, CPUs, and other AI accelerators. It adds to the company’s existing GaN and high-voltage silicon carbide portfolio.
The broader market was supportive on Tuesday, with the Nasdaq up 0.9% and the S&P 500 up 0.4%. Navitas carries a high beta, meaning it tends to move more sharply than the index in either direction.
NVTS had pulled back meaningfully in the prior week during a sector-wide dip over AI hardware valuations. Tuesday’s move was a partial recovery from that recent weakness.
The stock remains well below its 52-week high of $34.17. Navitas is also participating in the Jefferies Semiconductor, IT Hardware and Communications Technology Conference on Tuesday, giving management a platform to discuss the deal with institutional investors.
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