Why it matters: The deal would put Lumentum's lasers and optical parts under the same roof as Marvell's chips for data center connections, a part of AI hardware that both companies say is moving from copper to optics.
Marvell Technology has agreed to buy Lumentum in an all-stock deal, the two chip and optical companies said in a joint release on Monday. Lumentum stockholders would receive 4.500 Marvell shares for each Lumentum share they own, and the release puts the implied enterprise value for Lumentum at $115 billion, or about $1,132 per Lumentum share.
The premium: the companies say the price is about 23.9% above where both stocks closed on Oct 28, which they describe as the last trading day before market speculation about a deal began. After closing, current Marvell holders would own about 67% of the combined company and Lumentum holders about 33%, on a fully diluted basis.
What each side brings: according to the release, Marvell contributes chips for electrical and optical connections, network switching and custom processors, while Lumentum adds high-performance lasers, optical transceivers, optical circuit switching and its own compound semiconductor manufacturing, including indium phosphide. The companies argue that AI systems are outgrowing copper wiring and need electrical and optical parts designed together.
The companies' targets: Marvell and Lumentum say the deal would expand the combined company's addressable market to $550 billion and give it a path to more than $1 billion in yearly cost savings. They also expect it to add to Marvell's non-GAAP (adjusted) earnings per share in the first year after closing. These are the companies' own projections.
What happens next: both boards approved the agreement, the release says. The deal still needs approval from both companies' stockholders and from regulators, and the companies expect it to close in the first half of 2028. Marvell's current leader would run the combined company, and three members of Lumentum's board would join Marvell's board. Marvell plans to file a registration statement with the SEC that will include a joint proxy statement for stockholders.
This story is for information only and is not investment advice.
Sources
How we checked this: We read the companies' joint news release on Business Wire in a copy saved on Nov 2, 2026 at about 7:57 AM ET, and checked every figure, date and company statement against it.
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