Marvell Technology plans to buy optical-components maker Lumentum in an all-stock deal valued at about $115 billion. The transaction would combine Marvell’s chip and networking technology with Lumentum’s optical equipment used in AI and cloud infrastructure. (Associated Press)
Marvell sets $115 billion price
Under the agreement, Lumentum shareholders would receive 4.5 shares of Marvell stock for each Lumentum share. That exchange implies a value of about $1,132 per Lumentum share. After the deal closes, Lumentum investors would own about 33% of the combined company, while Marvell investors would own about 67%. (Marvell and Lumentum joint announcement)
The companies expect the transaction to close in the first half of 2028. The deal still needs approval from both groups of shareholders and regulatory authorities. (Marvell SEC filing)
Optics move into AI infrastructure
The deal brings together two parts of data-center technology. Marvell makes networking chips, custom processors, and electrical and optical interconnect products. Lumentum makes lasers, optical transceivers, and optical circuit-switching equipment.
These technologies help move data between servers and other parts of data centers. The companies say their combined business would offer a more complete set of electrical and optical technologies as AI workloads require increasingly fast connections. (Joint announcement)
Marvell and Lumentum also estimate that the deal could expand their addressable market to $550 billion and create more than $1 billion in annual cost savings. Those figures are company estimates, not guaranteed results.
AI data centers need optics
The deal is aimed at customers building large AI and cloud systems. The companies say combining their technologies could support more integrated optical solutions and faster product development as data centers connect larger groups of AI processors. (Joint announcement)
The Associated Press reported that Lumentum supplies lasers and other products used in AI and cloud infrastructure. The next major steps are shareholder votes, regulatory review, and plans for integrating the two businesses. (Associated Press)
References
Associated Press. (2026, November 2). US stocks recover some of last week’s sell-off after oil prices drop. AP News. https://apnews.com/article/048328e49e47ce7afe6c1fb9d9acf13d
Marvell Technology, Inc., & Lumentum Holdings Inc. (2026, November 2). Marvell and Lumentum to combine, creating a category leader in AI connectivity. https://www.publicnow.com/view/005FF7368944E0088CF77505A863A155377F0D4C
Marvell Technology, Inc. (2026, November 2). Current report on Form 8-K. U.S. Securities and Exchange Commission filing. https://www.stocktitan.net/sec-filings/MRVL/8-k-marvell-technology-inc-reports-material-event-b5412f92565e.html