Marvell to acquire Lumentum in $115 billion all-stock deal

Marvell Technology has agreed to acquire optical-components maker Lumentum in an all-stock transaction valued at about $115 billion, combining custom AI chips and data-center optical technology as demand for faster connections grows. The deal includes debt and would make Lumentum shareholders owners of about one-third of the combined company. Under the terms announced Monday, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each share they own. That equates to about $1,132 per Lumentum share, a premium of roughly 24% to its October 28 closing price, before reports of possible talks began circulating. Marvell shareholders would own about 67% of the combined company, with Lumentum shareholders holding the rest. The transaction has been approved unanimously by both companies’ boards but still requires shareholder and regulatory approvals. Marvell and Lumentum expect it to close in the first half of 2028, subject to those conditions. Marvell Chief Executive Matt Murphy is expected to remain chairman and chief executive, while three Lumentum directors, including Chief Executive Michael Hurlston, are expected to join Marvell’s seven-member board. Marvell...