Marvell Technology shares reversed earlier losses in premarket trading and were up nearly 4%, according to MSX.COM data, after a report said the company had agreed to acquire Lumentum for $115 billion. The stock had earlier fallen as much as 2.3% before turning higher.
Marvell said the transaction would expand the combined company’s total addressable market to $550 billion and strengthen its position in AI infrastructure connectivity. The company also said it expects the merger to generate more than $1 billion in annual cost synergies, improve long-term revenue growth, non-GAAP gross margin, and operating margin, and add to Marvell’s non-GAAP earnings per share in the first full year after the deal closes.
Marvell Technology (MRVL.O) swung higher in premarket trading and was up nearly 4%, according to MSX.COM data, after earlier falling as much as 2.3%.
A report said Marvell had agreed to acquire Lumentum for $115 billion.
What Marvell said about the combination
Marvell said the deal would expand the combined company’s total addressable market to $550 billion and strengthen its competitiveness in AI infrastructure connectivity.
The company said it expects the merger to deliver more than $1 billion in annual cost synergies, improve long-term revenue growth, non-GAAP gross margin, and operating margin, and increase Marvell’s non-GAAP earnings per share in the first full year after the transaction closes.
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