Marvell Technology acquires Lumentum in $115 billion AI infrastructure deal

Marvell Technology announced an all-stock acquisition of optical components maker Lumentum valued at about $115 billion, aiming to strengthen its position in AI infrastructure. Lumentum shareholders will receive 4.5 Marvell shares per share. The deal is expected to close in the first half of 2028.

American chipmaker Marvell Technology announced the acquisition of optical components company Lumentum in a stock deal valued at approximately $115 billion, including debt. The deal, one of the largest this year, aims to strengthen Marvell's position in the AI infrastructure market and increase competition against Broadcom. Lumentum shareholders will receive 4.5 Marvell shares for each share, a premium of about 23.9% over the closing price on October 28. The equity value of the deal stands at approximately $102.5 billion. Upon completion, Marvell shareholders are expected to hold about 67% of the combined company. The merger is expected to expand the potential market to about $550 billion and generate annual savings of over $1 billion. Marvell CEO Matt Murphy will continue in his role. The deal is expected to close in the first half of 2028, subject to approvals.