Marvell to acquire Lumentum in $115 billion AI deal

Marvell to acquire Lumentum in $115 billion AI deal

Marvell Technology has agreed to acquire optical components maker Lumentum in an all-stock transaction valued at about $115 billion, including debt, one of the largest technology deals of 2026. Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share they own, an implied value of about $1,132 per share and a premium of roughly 24 percent to the unaffected closing prices on October 28. Once the deal closes, Marvell shareholders are expected to own about 67 percent of the combined company, while Lumentum shareholders will own about 33 percent. Lumentum makes the lasers and optical components that link AI chips inside data centers, and Marvell says combining the two companies will address the growing connectivity demands of AI infrastructure as systems shift from copper toward optical technologies. The companies estimate the combined addressable market at $550 billion and have identified more than $1 billion in potential annual cost synergies. Matt Murphy will remain chairman and CEO of Marvell, and three Lumentum board members, including CEO Michael Hurlston, will join Marvell's board. Both boards approved the transaction unanimously, and closing is expected in the first half of 2028, subject to shareholder and regulatory approvals.