Navitas Semiconductor (NASDAQ: NVTS) shares climbed Tuesday following news the company agreed to acquire Claros, an energy management solutions provider for AI data centers.
Claros specializes in innovative power technology designed to meet the extreme energy demands of modern artificial intelligence infrastructure.
Navitas is offering up to $232.8 million for Claros, with $216 million paid at closing through a combination of cash and stock.
The remaining portion of the deal’s value will only be paid out if Claros meets certain predetermined business performance milestones.
The acquisition is driven by a fundamental limitation in today’s AI hardware landscape, where traditional power delivery systems cannot keep pace with next-generation chips.
Ultra-high-performance AI processors require enormous amounts of electricity and near-instant power response times that conventional energy systems simply cannot reliably provide.
“The future of AI depends on delivering thousands of amps to increasingly power-hungry processors with unprecedented speed and precision,” said Navitas CEO Chris Allexandre.
Claros addresses this challenge by stacking multiple power technologies into a single compact package positioned directly adjacent to AI chips.
This design means electricity travels only millimeters rather than inches, which slashes response times, cuts heat production, and boosts overall power efficiency.
The efficiency gains translate directly into lower operating costs for AI data centers, which are under increasing pressure to manage spiraling energy expenses.
Navitas estimates the Claros deal will more than double its total addressable market, expanding it to over $8 billion.
The acquisition represents a strategic push by Navitas to build what it describes as a grid-to-chip power delivery system, covering the entire power chain from source to processor.
Claros’ compact, integrated power technology is central to realising that grid-to-chip vision, giving Navitas a critical piece of technology it currently lacks.
The transaction is expected to close by the end of the year, pending regulatory approval from the relevant authorities.
NVTS investors responded positively to the announcement, with the stock rising as the market absorbed the potential long-term revenue and market expansion implications of the deal.
