Marvell Technology will acquire Lumentum in an all-stock deal valued at $115 billion, including debt, to expand its AI connectivity business. Lumentum shareholders will receive 4.5 Marvell shares for each share they own, and the transaction is expected to close in the first half of 2028.
Marvell Technology is buying optical components maker Lumentum in an all-stock deal valued at $115 billion, including debt. Marvell will pay $1,132 per share, a 23.9% premium to Lumentum’s last unaffected closing price on October 28; the deal has an equity value of $102.54 billion. Lumentum shareholders will own roughly 33% of the combined company on a fully diluted basis, and both boards unanimously approved the transaction.
Marvell CEO Matt Murphy will remain chairman and CEO of the combined company. He said AI infrastructure is shifting toward optical connectivity, creating an opportunity “that comes along once in a generation.” Marvell said the acquisition will expand the combined company’s total addressable market to $550 billion.
The companies expect the transaction to close in the first half of calendar 2028. Lumentum separately forecast second-quarter revenue of $1.58 billion to $1.63 billion, above analysts’ average estimate of $1.48 billion. Marvell said it expects fiscal 2031 sales of $70 billion to $90 billion, including around $37.5 billion from interconnect.
