Marvell has reached a definitive agreement to acquire Lumentum in an all-stock transaction, according to a company announcement cited by ChainCatcher. Under the terms, each Lumentum share will be exchanged for 4.500 shares of Marvell common stock. The deal implies an enterprise value for Lumentum of about $115 billion, or roughly $1,132 per share, representing a premium of about 23.9% to the companies’ unaffected closing prices on Oct. 28.
After the transaction closes, existing Marvell shareholders are expected to own about 67% of the combined company, while Lumentum shareholders will hold about 33%. The companies said the combination would bring together Marvell’s capabilities in electrical and optical interconnect, switching and custom chips with Lumentum’s strengths in high-performance lasers, optical transceiver modules and photonic circuit switching.
They said the combined business is aimed at building a full-stack connectivity portfolio for AI infrastructure and expanding its addressable market to about $550 billion. The companies also said the transaction is expected to generate more than $1 billion in annualized operating cost synergies and could be accretive to Marvell’s non-U.S. GAAP earnings per share in the first year after closing. The deal is expected to close in the first half of 2028, subject to shareholder and regulatory approvals.
Marvell has entered into a definitive agreement to acquire Lumentum in an all-stock transaction, according to a Marvell announcement cited by ChainCatcher.
Under the agreement, each Lumentum share will be exchanged for 4.500 shares of Marvell common stock. The terms imply an enterprise value for Lumentum of about $115 billion, or about $1,132 per share. That represents a premium of about 23.9% to the companies’ unaffected closing prices on Oct. 28.
Post-deal ownership split
Once the transaction is completed, existing Marvell shareholders are expected to own about 67% of the combined company, while Lumentum shareholders are expected to hold about 33%.
What the companies say the merger will combine
The companies said the combination would unite Marvell’s capabilities in electrical and optical interconnect, switching and custom chips with Lumentum’s strengths in high-performance lasers, optical transceiver modules and photonic circuit switching.
They said the goal is to build a full-stack connectivity portfolio for AI infrastructure and expand the combined company’s addressable market to about $550 billion.
Synergies and closing timeline
The transaction is expected to deliver more than $1 billion in annualized operating cost synergies, the companies said. They also said the deal could be accretive to Marvell’s non-U.S. GAAP earnings per share in the first year after closing.
The acquisition is expected to close in the first half of 2028, subject to approval from both companies’ shareholders and regulators.
Leadership and board changes
After closing, Matt Murphy will remain chairman and chief executive officer. From Lumentum, three directors, including Chief Executive Officer Michael Hurlston, are set to join Marvell’s board.
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