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

Marvell Technology has agreed to acquire Lumentum in an all-stock deal with an implied enterprise value of $115 billion, the companies said Monday. The definitive agreement takes the proposed combination beyond acquisition talks and into a signed deal unanimously approved by both boards.

Under the agreement, each Lumentum share would be exchanged for 4.500 Marvell shares. Using the companies’ unaffected closing prices on Oct. 28, 2026, they calculated the ratio at about $1,132 per Lumentum share, a 23.9% premium. Because the exchange ratio is fixed, the value delivered can change with Marvell’s share price before closing.

The combination would unite Marvell’s data-infrastructure technologies, including electrical and optical interconnects, network switching and custom silicon, with Lumentum’s lasers, optical transceivers, optical circuit switching and compound-semiconductor manufacturing. Together, these technologies connect and move data within and between AI systems.

Marvell and Lumentum estimate that the combined portfolio would address a $550 billion market. They also project more than $1 billion in annual run-rate cost savings and an increase in Marvell’s non-GAAP earnings per share during the first year after closing. Those figures are company forecasts, not realized results.

Current Marvell stockholders are expected to own about 67% of the combined company on a fully diluted basis, with Lumentum stockholders owning about 33%. The companies expect the transaction to close in the first half of 2028, subject to approval from both sets of stockholders, regulatory clearances and other customary closing conditions.