Marvell Technology has agreed to acquire Lumentum Holdings in an all-stock transaction that values the optical-component maker at an implied enterprise value of US$115bn, or about US$1,132 a share, the companies said on 2 November 2026.
Why Marvell Technology, Inc. is buying Lumentum Holdings Inc.
The companies said the deal combines Marvell's electrical interconnect and custom silicon with Lumentum's lasers and optical transceivers, as AI infrastructure moves towards optical connectivity. They expect it to lift the combined group's long-term revenue growth and margin profile.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity”
Deal terms and financing
Lumentum stockholders will receive a fixed 4.500 Marvell shares per share, a premium of about 23.9% measured against both companies' unaffected closing prices on 28 October 2026. Marvell holders will own about 67% of the enlarged company. The companies see line of sight to more than US$1bn of annual run-rate cost synergies and expect the deal to add to Marvell's non-GAAP earnings per share in the first year after completion. Matt Murphy will remain chairman and chief executive, and three Lumentum directors, including chief executive Michael Hurlston, will join Marvell's board.
Regulatory approvals and timing
The transaction needs approval from both companies' stockholders and regulatory clearances, and is expected to complete in the first half of calendar 2028.
Market context
Bloomberg reported on 28 October that the companies were in advanced talks, and Marvell's shares fell about 13% the following day on concerns about dilution. The Wall Street Journal and Reuters reported the signed deal on 2 November, with Reuters describing it as a costly bet on the AI boom.
