Marvell agrees to acquire Lumentum in $115 billion deal — Anadolu Agency

In the United States, chipmaker Marvell Technology has agreed to acquire Lumentum, a manufacturer of optical components. The all-stock deal values Lumentum at $115 billion including enterprise value, Anadolu Agency reports.

Terms of the share exchange

Under the agreement, Lumentum shareholders will receive 4.5 Marvell shares for each of their shares. Based on closing prices on October 28, the offer was about $1,132 per Lumentum share. This was 23.9% higher than Lumentum's closing share price that day, before reports of a potential deal emerged.

Following completion of the transaction, Marvell shareholders will own about 67% of the combined company, while Lumentum shareholders will own about 33%. The combined company will be led by Marvell Chairman and Chief Executive Officer Matt Murphy.

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Expansion for AI data centers

Marvell develops specialized chips and networking equipment, while Lumentum produces lasers and optical transceivers that convert electrical signals into light signals and vice versa. The companies said the acquisition is intended to expand Marvell's presence in data centers for artificial intelligence systems, where high-speed connections are needed to transmit data between thousands of processors.

Both boards of directors unanimously approved the deal. The companies expect more than $1 billion in annual cost savings and forecast growth in Marvell's adjusted earnings per share in the first year after the deal closes. The transaction is expected to close in the first half of 2028, subject to shareholder and regulatory approvals.