Check the latest quotes. Marvell Technology has officially announced that it will acquire Lumentum in an all-stock transaction valued at $1,132 per share.
The deal will bring together two of the fastest-growing enablers of AI infrastructure, combining complementary electrical and optical technologies to meet the increasingly complex interconnect demands of next-generation AI infrastructure. The combined company is expected to form a full-stack interconnect product portfolio that supports end-to-end deep co-design and high-volume production of fully validated, optimized optical module solutions, helping customers shorten their time to market.
The transaction is expected to enhance the combined entity's long-term revenue growth rate, non-GAAP gross margin and non-GAAP operating margin. It is expected to generate more than $1 billion in annualized cost synergies and to be accretive to Marvell Technology's non-GAAP earnings per share in the first year after closing.
Marvell Technology and Lumentum announced today that the two parties have signed a definitive agreement under which Marvell Technology will acquire Lumentum in an all-stock transaction. Under the terms of the deal, each share of Lumentum common stock held by Lumentum shareholders will be exchanged for 4.500 shares of Marvell Technology common stock.
The transaction implies an enterprise value of $115 billion for Lumentum, corresponding to a per-share price of approximately $1,132. Based on the unaffected closing prices of both companies on October 28, 2026, the last trading day before acquisition rumors emerged in the market, the premium is approximately 23.9%. On a fully diluted basis, upon completion of the closing, former Marvell Technology shareholders will own approximately 67% of the combined company, while former Lumentum shareholders will own approximately 33%. The combined company's potential total addressable market (TAM) is expected to expand to $550 billion.
Marvell Technology Chairman and Chief Executive Officer Matt Murphy said: "AI infrastructure is undergoing a fundamental architectural shift toward optical interconnect, a once-in-a-generation opportunity. The companies that move first and lead this transformation will define industry standards for decades to come. This merger brings together two leaders with highly complementary technologies, deep talent pools and proprietary manufacturing capabilities. We aim to lead the next era of AI interconnect and create substantial returns for shareholders."
Lumentum President and Chief Executive Officer Michael Hurlston said: "By joining Marvell Technology, the new company will be uniquely positioned to capture the $550 billion market opportunity and generate sustained, meaningful shareholder returns. The surge in AI data traffic is forcing rapid hardware iteration. This merger will strengthen our ability to deliver next-generation solutions at scale. Together with Marvell, we will meet all of our customers' interconnect needs, covering today's cross-cluster scale-out and scale-up scenarios as well as future scale-up and in-package interconnect scenarios. Through deep co-design that matches customers' demanding requirements, we will help customers shorten their time to market, accelerate the pace of innovation and build benchmark-class performance products."
The merger offers compelling strategic value and financial benefits: 1. Creating an AI interconnect leader: Marvell's optical and electrical interconnect, switching and custom chip technologies, combined with Lumentum's high-performance lasers, optical modules and optical circuit switching capabilities, will form a complete interconnect product portfolio spanning cross-cluster interconnect, scale-up, scale-out and in-package interconnect. After closing, the combined company will be able to serve customers' interconnect needs across different transmission distances and multiple topologies, from distributed data centers to advanced chip packages. 2. Enabling end-to-end deep co-design and accelerating customer innovation: As AI infrastructure complexity continues to rise, customers need greater integration and optimization of digital, analog and optical technologies. After the merger, complementary technologies and engineering capabilities across the entire signal chain will be integrated to develop highly optimized, pre-validated optical solutions that improve bandwidth, performance and energy efficiency, shorten customers' time to market and support large-scale production. 3. Integrating specialty manufacturing capabilities and expanding R&D resources: Lumentum brings advanced compound semiconductor processes such as indium phosphide (InP), as well as high-speed, high-power laser manufacturing capabilities. After closing, the combined company will integrate cutting-edge chip design, advanced packaging and specialty production capabilities to achieve deeper heterogeneous integration, strengthen supply chain security and accelerate next-generation optical technology development. 4. Creating long-term shareholder value: The merger of two high-growth AI infrastructure companies expands the TAM to $550 billion and strengthens the ability to serve emerging scale-up and in-package interconnect markets. The transaction is expected to improve long-term revenue growth, non-GAAP gross margin and operating margin. Annualized cost synergies are expected to exceed $1 billion, and the deal is expected to be accretive to Marvell Technology's non-GAAP earnings per share in the first year after closing.
Transaction structure and terms. The agreement has been unanimously approved by the boards of directors of both companies: each share of Lumentum common stock held by Lumentum shareholders at closing will be exchanged for 4.5 shares of Marvell common stock; on a fully diluted basis, Lumentum shareholders will correspond to approximately 33% of the combined company. After closing, Matt Murphy will continue to serve as Chairman and Chief Executive Officer of the combined company. Three members of the Lumentum board of directors, including Lumentum CEO Michael Hurlston, will join Marvell's existing seven-member board. The transaction is expected to close in the first half of 2028, subject to approval by Marvell Technology and Lumentum shareholders, regulatory approvals in various countries and other customary closing conditions.
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