Marvell agrees to acquire Lumentum in US$115 billion stock deal
The companies expect the transaction to close in the first half of 2028, subject to shareholder and regulatory approval.
Marvell Technology has reached an agreement to acquire optical components maker Lumentum through a share exchange valuing the business at US$115 billion, including debt, the companies said. The transaction would bring together Marvell’s custom AI chips and networking technology with Lumentum’s lasers and optical equipment.
Each Lumentum share would be exchanged for 4.5 Marvell shares, equivalent to about US$1,132. The companies put the premium at about 23.9% over Lumentum’s closing price on 28 October, the last trading session before reports of the negotiations.
Following the transaction, roughly 67% of the combined business would belong to Marvell shareholders, with about 33% held by Lumentum shareholders. Both companies’ boards unanimously backed the agreement.
Marvell chairman and chief executive Matt Murphy will retain both positions. Lumentum chief executive Michael Hurlston and two other Lumentum directors will join Marvell’s board.
The companies said growing AI systems are pushing copper connections toward their physical limits and increasing demand for optical links. They expect the combined business to address a US$550 billion market and see a path to annual cost savings exceeding US$1 billion. They also expect the acquisition to increase Marvell’s adjusted earnings per share during the first year after completion.
Marvell already purchases laser technology from Lumentum, Bloomberg reported. Nvidia invested US$2 billion in each company earlier in the year, according to Reuters, which said its investment in Marvell included an AI partnership.
