Marvell said it has entered into a definitive agreement to acquire optical communications technology company Lumentum in an all-stock transaction with an implied enterprise value of about $115 billion. Under the terms of the deal, Lumentum shareholders will receive 4.5 Marvell shares for each share they own, implying a value of about $1,132 per share. The offer represents a premium of roughly 23.9% to the companies’ unaffected closing price on Oct. 28, before takeover rumors affected trading. After the transaction closes, existing Marvell shareholders are expected to own about 67% of the combined company, while former Lumentum shareholders will hold about 33%. Marvell said the combination will bring together its semiconductor and network interconnect technologies with Lumentum’s optical communications portfolio, including lasers and optical transceivers, as it pushes into the AI optical interconnect market. The companies said the combined business could expand its addressable market to $550 billion and generate more than $1 billion in annual cost synergies. The deal is expected to close in the first half of 2028, subject to shareholder and regulatory approvals.
Marvell said it has reached a definitive agreement to acquire optical communications technology company Lumentum in an all-stock transaction with an implied enterprise value of about $115 billion.
Under the agreement, Lumentum shareholders will receive 4.5 shares of Marvell stock for each share they hold, implying a value of about $1,132 per share. The offer is roughly 23.9% above the companies’ unaffected closing price on Oct. 28, before takeover rumors influenced trading.
Deal terms and ownership split
Once the transaction is completed, existing Marvell shareholders are expected to own about 67% of the combined company, while former Lumentum shareholders will hold about 33%.
AI optical interconnect push
The acquisition is set to combine Marvell’s semiconductor and network interconnect technologies with Lumentum’s optical communications technologies, including lasers and optical transceivers, as the company expands in the AI optical interconnect market.
The two companies said the combined business could increase its potential market size to $550 billion and deliver more than $1 billion in annual cost synergies.
The deal is expected to close in the first half of 2028, pending shareholder and regulatory approvals.
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