Marvell Technology Agrees to Acquire Lumentum for $115 Billion

Marvell Technology Inc. entered an all-stock agreement to acquire optical-components maker Lumentum Holdings Inc. in a transaction with an implied enterprise value of $115 billion. Under the terms unanimously approved by both boards, Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share, a 23.9% premium over the October 28 closing price. Upon completion, Lumentum shareholders will own approximately 33% of the combined entity, while Marvell holders will retain 67%.

Marvell is positioning the acquisition as a strategic move to combine electrical and optical technologies, integrating Lumentum's lasers and transceivers to meet the connectivity demands of AI data centers. The company expects the deal to expand its total addressable market to $550 billion and strengthen its position against rival Broadcom Inc. Both companies had previously received $2 billion investments from Nvidia Inc. earlier this year.

Market reaction was volatile, with Marvell shares falling nearly 7% as investors raised concerns over dilution, integration risks, and the economics of AI infrastructure spending. The deal requires shareholder and regulatory approval, including from authorities in China, and is expected to close in the first half of 2028. Goldman Sachs is serving as the financial advisor for the transaction.