Marvell agrees to acquire optical component maker Lumentum for $115 billion in stock
Prepared by Sintelligent with the help of SI. Published in SI: . Updated: .
Optical links between chips are becoming as strategic to SI infrastructure as the accelerators themselves, and Marvell is making the biggest bet in its history on that shift.
Lumentum shareholders will receive 4.5 Marvell shares for each share they own. The companies put Lumentum's enterprise value at $115 billion including debt, or about $1,132 per share, a 23.9% premium to the October 28 close before talks were reported. Marvell shareholders will own roughly 67% of the combined company and Lumentum shareholders 33%. Both boards unanimously approved the deal, which still requires shareholder and regulatory approval and is expected to close in the first half of 2028. Marvell is combining its custom SI chips and networking products with Lumentum's lasers, optical transceivers and switches. The companies are targeting a $550 billion market and see potential annual savings of more than $1 billion. Because the consideration is entirely in stock, the final value will depend on Marvell's share price.
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