Marvell to acquire Lumentum in $115 billion AI infrastructure deal
The all-stock transaction aims to strengthen Marvell's position in the optical connectivity market and challenge rival Broadcom.
Marvell Technology announced on Monday that it will purchase optical components manufacturer Lumentum in an all-stock deal valued at $115 billion, including debt. According to Moneycontrol, the move is intended to capitalise on the artificial intelligence spending boom and challenge competitor Broadcom.
Under the terms of the agreement, Marvell will provide $1,132 in stock for each Lumentum share. This price represents a 23.9 per cent premium over Lumentum's last unaffected closing price on October 28. Lumentum shareholders will receive 4.5 Marvell shares for every share they own, resulting in approximately 33 per cent ownership of the merged entity on a fully diluted basis.
Marvell CEO Matt Murphy stated that AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating a once-in-a-generation opportunity. He said the company intends to help shape the next era of AI connectivity and create stockholder value.
Lumentum produces photonic products, such as high-performance lasers and optical components used in cloud computing and communications networks. The acquisition is expected to increase the total addressable market for the combined company to $550 billion.
The transaction has received unanimous approval from the boards of both companies. The deal is expected to close during the first half of calendar 2028.