Marvell Technology to acquire Lumentum Holdings for $115 billion

Marvell Technology has reached an agreement to acquire Lumentum Holdings, a San Jose-based company specializing in optical components for data centers and telecommunications networks. The deal is structured as an all-stock transaction with an enterprise value of $115 billion. Upon completion, Marvell shareholders will hold 67% of the combined entity.

The acquisition is intended to bolster Marvell's capabilities in optical connectivity for AI systems, following its recent integration of Celestial AI. Marvell already maintains an existing supply relationship with Lumentum for laser technology, making the acquisition a vertical integration move aimed at securing its AI infrastructure supply chain.

Lumentum is also a key partner to Nvidia, which recently entered a strategic agreement to co-develop optics technology with the firm, backed by a $2 billion equity investment. The combination of Marvell and Lumentum places significant focus on the rapidly growing demand for hardware necessary to support large-scale artificial intelligence deployments.