Marvell Agrees to Acquire Lumentum in $115 Billion All-Stock Deal

Marvell Technology and Lumentum have entered into a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction with an implied enterprise value of $115 billion, the companies said. Lumentum stockholders will receive 4.500 shares of Marvell common stock for each Lumentum share, and the deal is expected to close in the first half of calendar year 2028, subject to stockholder, regulatory and other customary approvals. After closing, Marvell stockholders are expected to own about 67 percent of the combined company, while Lumentum stockholders are expected to own about 33 percent.

Deal Terms and Ownership

The exchange ratio implies approximately $1,132 per Lumentum share and a premium of about 23.9 percent based on each company’s unaffected closing share price as of October 28, 2026. The boards of both companies unanimously approved the agreement. Matt Murphy will remain chairman and CEO of the combined company, and three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s board, which currently has seven directors.

Strategic Rationale

The companies said the combination is intended to create a category leader in AI connectivity by joining Marvell’s electrical and optical interconnect, network switching, custom XPU and XPU attach and advanced semiconductor technologies with Lumentum’s high-performance lasers, optical transceivers, optical circuit switching and compound semiconductor manufacturing. They expect a full-stack connectivity portfolio spanning scale-across, scale-out, scale-up and scale-in, with co-design across the electrical and optical signal chain and pre-validated optical solutions intended to improve bandwidth, performance and power efficiency. The combined company’s total addressable market is expected to expand to $550 billion.

Financial Outlook and Manufacturing

Marvell said the transaction is expected to enhance the combined company’s long-term revenue growth, non-GAAP gross margin and non-GAAP operating margin profile. It is expected to provide line of sight to more than $1 billion in annual run-rate cost synergies and to be accretive to Marvell non-GAAP earnings per share in year one after closing. Lumentum brings indium phosphide and high-speed, high-power laser capabilities, while the combined company plans to bring together leading-edge CMOS, silicon photonics, compound semiconductors, advanced packaging and manufacturing capabilities.

Recent Financial Updates

In connection with the announcement, Marvell reported preliminary revenue for the third quarter of fiscal 2027 consistent with prior guidance, maintaining the midpoint while narrowing the expected range to plus or minus 2 percent from the original plus or minus 5 percent. Lumentum separately reported financial results for its first fiscal quarter of 2027, available on its investor website. The companies plan a joint conference call today at 5:00 a.m. Pacific Time, or 8:00 a.m. Eastern Time.

Earlier coverage: Marvell is in advanced talks to buy Lumentum in an AI-related megadeal

Sources: Marvell · Reuters · Bloomberg