Marvell Technology to acquire Lumentum in $115 billion deal
Marvell to acquire Lumentum for $115 billion, aiming to create a dominant force in AI data center connectivity.
(Photo via CNBC)
Marvell Technology, Inc. has announced a definitive agreement to acquire Lumentum Holdings Inc. in an all-stock transaction valued at approximately $115 billion. Under the terms of the deal, Lumentum stockholders will receive 4.500 shares of Marvell common stock for each share of Lumentum common stock held.
The acquisition aims to establish a leader in AI connectivity by merging Marvell’s electrical connectivity and custom silicon portfolio with Lumentum’s expertise in photonics, including lasers, optical transceivers, and optical circuit switching. Marvell CEO Matt Murphy stated that the move is intended to address a fundamental architectural shift in AI data centers as copper-based connections reach their limits in bandwidth and energy efficiency.
Following the completion of the transaction, which is expected in the first half of 2028, Matt Murphy will continue to lead the combined company. Lumentum CEO Michael Hurlston is expected to join the Marvell board of directors alongside two other Lumentum directors.
The agreement is subject to regulatory and stockholder approvals. The contract includes termination fee provisions, with Marvell potentially owing $5.8 billion and Lumentum potentially owing $2.9 billion if the deal is terminated under specific conditions.