Marvell agrees to buy Lumentum in $115 billion all-stock deal
The combination would let one supplier offer both electrical and optical interconnect parts for AI data centres, from links between racks to co-packaged optics.
Marvell Technology has agreed to acquire Lumentum in a deal valued at an enterprise value of $115 billion, pairing two major suppliers of data center optical components. Lumentum shareholders will receive 4.5 Marvell shares per share held, which the companies value at about $1,132 per share, a 23.9% premium over the October 28 unaffected closing price. After closing, Marvell's current shareholders would own about 67% of the combined company and Lumentum's about 33%. Both boards approved the transaction unanimously, and completion is expected in the first half of 2028, subject to regulatory and shareholder approval. For developers and operators, the combination would let one supplier offer both electrical and optical interconnect parts for AI infrastructure, spanning inter-rack links to co-packaged optics.
Why it matters
The deal pairs two suppliers of optical components used in data centre networks, with Lumentum shareholders receiving 4.5 Marvell shares each and Marvell's current shareholders holding about 67% of the combined company. Lumentum's expertise in indium phosphide, which is used to make lasers and other high-performance optical chips, sits at the centre of the combination. Marvell has already bought optical businesses before, including Inphi in 2021 and Celestial AI in February 2026, so this extends a pattern rather than starting one. Completion is not expected until the first half of 2028, so for now the change is one of ownership and plans, subject to regulatory and shareholder approval.
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