Marvell Agrees to Buy Lumentum in $115 Billion Stock Deal

Marvell Technology, Inc. has signed a definitive agreement to acquire Lumentum Holdings Inc., confirming previous reports that the companies were in advanced talks, the companies said in a press release. The all stock transaction gives Lumentum an implied enterprise value of $115 billion, or about $1,132 per share, a premium of about 23.9% based on each company's closing share price on 28 October, the last trading day before market speculation about a deal began.

Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share. After closing, current Marvell shareholders will own about 67% of the combined company, while Lumentum shareholders will own about 33%.

The deal combines Marvell's semiconductor, switching and interconnect products with Lumentum's lasers, optical transceivers and optical circuit switches. The companies say AI data centres are moving from copper to optical connections and that the deal expands the combined company's total addressable market to $550 billion. "AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," said Marvell CEO Matt Murphy. Marvell expects more than $1 billion in annual cost savings and an increase in adjusted earnings per share during the first year after closing.

Murphy will remain chairman and CEO of the combined company. Three Lumentum directors, including CEO Michael Hurlston, will join Marvell's board. The companies expect the transaction to close in the first half of 2028, subject to shareholder and regulatory approvals.