Marvell Technology has agreed to acquire Lumentum in an all-stock transaction valued at $115 billion, marking a major move in the AI infrastructure space. Under the terms, Lumentum shareholders will receive 4.500 shares of Marvell common stock for each share of Lumentum they own, representing a 23.9% premium based on unaffected closing prices as of October 28, 2026. Post-closing, Marvell shareholders will own approximately 67% of the combined company, while Lumentum shareholders will hold 33%.
The deal comes as the AI industry shifts toward optical connectivity to meet growing bandwidth demands and overcome copper-based limitations. Marvell’s strengths in electrical and optical interconnects, network switching, and custom silicon will combine with Lumentum’s expertise in high-performance lasers, optical transceivers, and optical circuit switching (OCS). The merged entity aims to offer a fully integrated portfolio spanning CMOS, silicon photonics, compound semiconductors, and advanced packaging.
"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," said Matt Murphy, Chairman and CEO of Marvell. Michael Hurlston, President and CEO of Lumentum, added that the combination enables co-design across scale-across, scale-out, scale-up, and scale-in domains. The deal is expected to create a category leader in AI connectivity and capitalize on a $550 billion market opportunity.
Source: TechPowerUp News · Summarized by HeadlinesBriefing