Marvell Technology has entered into a definitive agreement to acquire Lumentum in an all-stock transaction, according to Odaily. Under the terms of the deal, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each share they hold. Once the transaction closes, existing Marvell shareholders are expected to own about 67% of the combined company, while Lumentum shareholders will hold roughly 33%.
The companies said the deal is expected to close in the first half of 2028. Completion remains subject to approval from both companies’ shareholders as well as regulatory clearance. Marvell said it expects the merger to generate more than $1 billion in annual cost synergies. It also said the transaction is expected to be accretive to non-GAAP earnings per share in the first year after closing. In addition, the combined company’s target market opportunity is projected to expand to $550 billion.
Marvell Technology has reached a definitive agreement with Lumentum under which Marvell will acquire the company in an all-stock transaction, according to Odaily.
Exchange ratio and post-deal ownership
Under the agreement, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each Lumentum share they own. After the transaction closes, existing Marvell shareholders are expected to own about 67% of the combined company, while Lumentum shareholders will hold about 33%.
Expected closing timeline
The deal is expected to be completed in the first half of 2028. It is still subject to approval by shareholders of both companies and by regulators.
Marvell’s stated expectations for the merger
Marvell said the combination is expected to deliver more than $1 billion in annual cost synergies. The company also said the deal will be accretive to non-GAAP earnings per share in the first year after closing. The combined company’s target market is projected to expand to $550 billion.
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