Marvell Technology Nears Acquisition of Lumentum Holdings
Marvell Technology is reportedly close to acquiring optical-networking firm Lumentum Holdings to expand its data center capabilities for the artificial-intelligence boom.
Reports indicate that Marvell Technology is close to acquiring Lumentum Holdings, a provider of optical-networking technology. While a final agreement has not been reached, an announcement could occur as early as next week.
The potential deal is driven by a surge in demand for optical networking, which utilizes light to transfer massive amounts of data within data centers to support artificial intelligence. Marvell, primarily a custom chip provider, currently maintains a customer relationship with Lumentum for its laser technology.
Market reactions following the reports were split, with Lumentum stock rising 11.4% in after-hours trading on Wednesday, while Marvell stock declined by 8%. Both companies have existing multiyear agreements with Nvidia for advanced laser systems and optical-networking components.
