Marvell to acquire Lumentum in $115 billion stock deal

Marvell Technology has agreed to acquire optical components maker Lumentum Holdings in an all-stock transaction with an implied enterprise value of $115 billion, combining chip and networking products with the lasers and other equipment used to move data through AI data centers. Under the agreement, Lumentum shareholders would receive 4.5 Marvell shares for each share they own. The exchange ratio is fixed, so the value of the consideration will change with Marvell’s share price. The companies’ terms put Marvell shareholders at about 67% of the combined company and Lumentum shareholders at about 33% on a fully diluted basis. The proposed acquisition requires approval from both companies’ shareholders and regulators. Marvell and Lumentum expect it to close in the first half of 2028. Marvell Chief Executive Matt Murphy is to lead the combined company, while Lumentum Chief Executive Michael Hurlston and two other Lumentum directors are expected to join Marvell’s board. Marvell designs chips and networking technology for data centers, while Lumentum makes lasers, optical transceivers and other components that transmit information using light. The combination is intended to give...