Marvell to acquire Lumentum in $115B all-stock deal, creating AI data-center connectivity giant (Nov 2)
What happened
Marvell Technology announced a definitive agreement on Monday, November 2 to acquire Lumentum in an all-stock transaction with an implied enterprise value of about $115 billion (equity value ~$102.5 billion). Under the terms, Lumentum shareholders will receive a fixed 4.500 Marvell shares per Lumentum share, implying ~$1,132 per Lumentum share — a 23.9% premium to the unaffected October 28 closing prices. Lumentum holders would own about 33% of the combined company; Marvell CEO Matt Murphy stays chairman and CEO, with three Lumentum directors (including CEO Michael Hurlston) joining Marvell's board. The companies cite a combined $550 billion addressable market, more than $1 billion in annual run-rate cost synergies (mostly from cost of goods sold), and accretion to Marvell's non-GAAP EPS in the first year after closing, expected in the first half of 2028 subject to shareholder and regulatory approvals. Because the exchange ratio is fixed, the deal's dollar value floats with Marvell's share price until closing.
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Start your free 14-day trialWho’s affected
- MRVL (Marvell — acquirer, shares fell ~3% on the announcement as dilution and integration risk were repriced)
- LITE (Lumentum — target, ~23.9% premium; despite the premium, shares slipped ~6.2% as the fixed-ratio all-stock structure passes Marvell's share-price volatility through to holders)
- COHR (Coherent — fellow optical-component play, now subject to takeout-premium speculation)
- Broadcom (AVGO — closest competitor to the combined company in AI networking custom silicon)
- Nvidia (NVDA — $2B Lumentum investor; deal tightens the optics supply chain it depends on for AI cluster networking)