Marvell Announces All-Stock Acquisition of Lumentum for Approximately $115 Billion to Expand Into the AI Optical Interconnect Market

on November 2, according to a filing by Marvell Technology, the company has reached a definitive acquisition agreement with optical communications firm Lumentum to acquire the latter in an all-stock transaction, implying an enterprise value of approximately $115 billion.

Under the agreement, Lumentum shareholders will receive 4.5 shares of Marvell stock for each share held, equivalent to approximately $1,132 per share, representing a premium of roughly 23.9% over the closing price on October 28 prior to acquisition rumors. Following the transaction, existing Marvell and Lumentum shareholders will own approximately 67% and 33% of the combined company, respectively.

The acquisition will combine Marvell's semiconductor and network interconnect technologies with Lumentum's optical communication technologies, including lasers and optical transceivers. Both companies project the potential market for the combined entity to grow to $550 billion, delivering more than $1 billion in annual cost synergies. The deal is expected to close in the first half of 2028, pending approval from shareholders and regulators.