
Marvell to buy Lumentum in $115 billion all-stock deal
The largest tech deal of the year bets that optical links will define AI data-center networking
SANTA CLARA, Calif. — Marvell Technology agreed Monday to acquire optical-components maker Lumentum in an all-stock transaction with an implied enterprise value of $115 billion. Lumentum holders will get 4.5 Marvell shares for each Lumentum share. That is about $1,132 a share, a 23.9% premium to the October 28 close, before deal speculation began. Marvell holders would own roughly 67% of the combined company and Lumentum holders about 33%. Both boards approved the deal. Marvell expects more than $1 billion in annual cost synergies and earnings accretion in the first year after closing. It expects to close in the first half of 2028, pending approvals. Reuters put the equity value at $102.5 billion. Because the price is fixed in Marvell shares, its value moves with Marvell's stock. Lumentum fell about 10% and Marvell about 5% in early trading.
Why it mattersThe deal shows chipmakers moving to own the optical links that connect AI clusters, and it will face antitrust and shareholder scrutiny for more than a year.













