Marvell to buy Lumentum in $115 billion AI infrastructure deal
The all-stock acquisition aims to strengthen Marvell's position in the optical connectivity market and challenge rival Broadcom.
Marvell Technology announced on Monday that it will acquire optical components manufacturer Lumentum in an all-stock transaction valued at $115 billion, including debt. According to Moneycontrol, the deal is one of the largest of 2026 and represents a significant bet on the ongoing artificial intelligence boom.
The agreement involves Marvell paying $1,132 per share in stock, which is a 23.9 per cent premium over Lumentum's unaffected closing price on October 28. Lumentum shareholders will receive 4.5 Marvell shares for every share they own, resulting in them holding approximately 33 per cent ownership of the combined entity.
Marvell CEO Matt Murphy, who will serve as chairman and CEO of the merged company, said that AI infrastructure is moving toward a fundamental architectural shift in optical connectivity. He stated that the company intends to help shape the next era of AI connectivity.
The move is seen as an attempt to challenge Broadcom, which serves as a primary custom-chip partner for Alphabet-owned Google. Marvell has recently expanded its own footprint, including an August deal to supply chips alongside Google's AI processors that could reach $120 billion in sales by fiscal 2033.
Lumentum produces photonic products, such as high-performance lasers and optical components used in cloud computing and communications networks. Earlier this year, Nvidia invested $2 billion each in both Marvell and Lumentum.
The transaction has received unanimous approval from the boards of both companies. It is expected to be completed during the first half of calendar 2028.