On November 2, Marvell Technology agreed to buy Lumentum in an all-stock deal with an implied value of $115 billion, combining their chip, networking and light-based technology businesses in a major effort to benefit from AI data-center demand.
Under the agreement, Lumentum shareholders would get 4.5 Marvell shares for each Lumentum share they own. The exchange ratio is fixed, so the deal’s market value will change with Marvell’s share price. The companies put the implied value at about $1,132 per Lumentum share, or 23.9% above the closing share prices that were unaffected by the deal on October 28.
After the deal closes, current Marvell shareholders are expected to own about 67% of the combined company, and Lumentum shareholders would own the remaining 33%. Marvell’s networking chips and electrical technology for linking devices would be paired with Lumentum’s lasers, light-based devices that send and receive data, and switches for optical connections. These components are used to move data through AI infrastructure.
The companies say combining these technologies could help them develop complete systems for connecting and moving data. They say AI data centers need greater capacity to move data, while copper connections face physical limits. Both companies’ boards have approved the proposal, but it still needs shareholder and regulatory approval.
The companies expect the deal to close in the first half of 2028.