Marvell to buy Lumentum in all-stock deal, a massive bet on AI connectivity

Marvell Technology announced a definitive all-stock agreement to acquire optical communications firm Lumentum in a deal valuing the target at an implied enterprise value of approximately $115 billion. Under the terms, Lumentum shareholders will receive 4.5 Marvell shares per Lumentum share, valuing each share at roughly $1,132 and representing a premium of about 23.9% over the unaffected closing price on October 28. Post-close, Marvell and Lumentum shareholders will own approximately 67% and 33% of the combined company, respectively. The deal pairs Marvell's semiconductor and network interconnect business with Lumentum's lasers and optical transceivers, targeting the AI optical interconnect market, with the combined company citing a total addressable market of $550 billion and more than $1 billion in annual cost synergies. The transaction is expected to close in the first half of 2028, pending shareholder and regulatory approvals.