Marvell to acquire Lumentum in $115 billion all-stock transaction

Marvell Technology has announced an agreement to acquire Lumentum in an all-stock transaction valued at approximately $115 billion. Under the terms of the deal, Lumentum shareholders will receive 4.5 shares of Marvell for each share held. The companies expect the acquisition to close during the first half of 2028.

The integration aims to combine Marvell’s electrical expertise with Lumentum’s optical components to support the infrastructure demands of artificial intelligence. As data centers scale to support complex large language models, high-speed optical connectivity has become a critical bottleneck and growth area for chipmakers.

CEO Matt Murphy stated that the industry is undergoing a shift toward optical connectivity, characterizing the move as a strategic effort to define future standards in AI hardware. The acquisition follows Marvell’s earlier purchase of Celestial AI. Investors reacted with caution to the announcement, with shares of both companies trading lower following the news.