Marvell to Acquire Lumentum in $115 Billion All-Stock Deal, Betting on Optical Connectivity for AI Data Centers
Marvell and Lumentum announced on November 2 a definitive agreement for Marvell to acquire Lumentum in an all-stock deal: 4.5 Marvell shares per Lumentum share, an implied enterprise value of $115 billion (about $1,132 per share, a roughly 23.9% premium). Marvell holders will own about 67% of the combined company. The companies say AI clusters are shifting from copper to optics, and the combination will cover connectivity from data center interconnect down to in-package links, targeting a $550 billion market. Closing is expected in the first half of 2028.

Key Takeaways
- Fixed exchange ratio of 4.5 to 1 implies a $115 billion enterprise value for Lumentum, a roughly 23.9% premium to the unaffected October 28 close.
- Marvell holders will own about 67% and Lumentum holders about 33%; Matt Murphy stays chairman and CEO, and three Lumentum directors including CEO Michael Hurlston join the board.
- The deal combines Marvell electrical and optical interconnect, switching and custom XPU silicon with Lumentum lasers, optical transceivers, optical circuit switching (OCS) and indium phosphide (InP) manufacturing.
- The companies cite more than $1 billion in run-rate cost synergies and year-one non-GAAP EPS accretion; shareholder and regulatory approvals are required, with closing expected in the first half of 2028.
