Marvell Agrees to Acquire Lumentum in $115 Billion All-Stock AI Connectivity Deal

Marvell Technology announced Monday that it has entered a definitive agreement to acquire Lumentum in an all-stock transaction with an implied enterprise value of $115 billion for Lumentum, a deal the companies said would create a category leader in AI connectivity.

Under the terms, approved unanimously by both boards, Lumentum stockholders would receive 4.5 shares of Marvell common stock for each Lumentum share, implying about $1,132 per Lumentum share, a premium of roughly 23.9% to the companies' unaffected closing prices on October 28, the last trading day before market speculation about a deal began. Current Marvell stockholders would own about 67% of the combined company and Lumentum stockholders about 33%.

The companies said the combination pairs Marvell's electrical and optical interconnect, switching and custom silicon with Lumentum's lasers, optical transceivers and optical circuit switching, expanding the combined company's total addressable market to $550 billion. They project more than $1 billion in annual run-rate cost synergies and expect the deal to be accretive to Marvell's non-GAAP earnings per share in the first year after closing.

Marvell Chairman and CEO Matt Murphy would lead the combined company, and three Lumentum board members, including CEO Michael Hurlston, would join Marvell's board.

The transaction has not been completed. It is expected to close in the first half of 2028, subject to approval by both companies' stockholders, regulatory approvals and other customary conditions.