Marvell Agrees to Buy Lumentum in $115 Billion All-Stock Deal

Marvell Technology agreed on November 2 to acquire optical chip and networking maker Lumentum in an all-stock deal with an enterprise value of $115 billion, one of the largest acquisitions in tech history. Lumentum shareholders will receive 4.5 Marvell shares per share, about $1,132 per share, with Marvell holders owning about 67 percent and Lumentum holders about 33 percent of the combined company.

The deal is a bet on the infrastructure behind artificial intelligence. Lumentum's lasers and optical components move data between servers and data centers at high speed, a bottleneck that has become critical as AI workloads grow.

Combining Marvell's custom silicon and networking chips with Lumentum's optics would create one of the broadest suppliers to cloud operators and telecom carriers. The companies said the combination would accelerate development of next-generation optical interconnects.

The transaction is expected to close in the first half of calendar 2028, subject to shareholder and regulatory approval. Deals of this size in semiconductors typically face close antitrust scrutiny in the United States, Europe and China.

Investors reacted cautiously at first, as with most all-stock mega-deals, weighing the strategic logic against execution risk and the long wait until closing. If completed, the merger would reshape the optical networking landscape just as AI data-center buildouts enter their next phase.