Marvell to buy Lumentum in $115 billion deal in AI data-center bet
MRVL•Marvell will acquire Lumentum in an all-stock deal valued at $115 billion including debt, expanding its addressable market to $550 billion. The offer values Lumentum’s equity at $102.54 billion and is expected to close in the first half of 2028.
1. Deal terms
Marvell will pay $1,132 in stock per Lumentum share, a 23.9% premium to Lumentum’s closing price on October 28. Lumentum shareholders will receive 4.5 Marvell shares for each share they own, giving them about 33% of the combined company on a fully diluted basis. Both boards unanimously approved the deal.
2. AI connectivity push
Marvell said the acquisition would expand the combined company’s total addressable market to $550 billion. Lumentum makes photonic products, including lasers and optical components used in AI, cloud computing and communications networks. Marvell CEO Matt Murphy will remain chairman and CEO of the combined company.
3. Fees and outlook
Marvell would owe Lumentum a $5.8 billion termination fee if its board withdraws support or accepts another takeover offer; Lumentum would owe Marvell $2.9 billion in similar circumstances. Marvell would also pay $3.2 billion if regulators block the deal. Separately, Lumentum expects second-quarter revenue of $1.58 billion to $1.63 billion.
