SANTA CLARA, Calif. — Lumentum is headed inside Marvell Technology. The two companies said Monday they had struck an all-stock takeover, priced at an implied enterprise value of $115 billion for Lumentum.
Each Lumentum share will swap for 4.500 Marvell shares. Priced off the Oct. 28 closes — the last session before talk of a deal started circulating — that comes to roughly $1,132 a share, a premium of about 23.9%.
Marvell’s current holders end up with roughly two-thirds of the combined company, about 67%. Lumentum’s holders get the rest, around 33%, on a fully diluted basis. Both boards signed off unanimously.
The bet is on how data moves inside AI data centers. Copper wiring is running into physical limits as bandwidth demands grow, and the two companies say the industry is shifting toward optical connections, which move data with light instead of electrical signals.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,”
Marvell makes electrical and optical interconnect, network switching and custom silicon. Lumentum makes the other half of that chain: high-performance lasers, optical transceivers and optical circuit switches, along with specialized compound semiconductor parts.
Together, the companies put their total addressable market at $550 billion. They said they see a path to more than $1 billion in annual run-rate cost savings, and they expect the deal to add to Marvell’s non-GAAP earnings per share in the first year after closing.
Lumentum reported its own results the same morning. Net revenue for its fiscal first quarter, which ended Sept. 26, was $1.26 billion, and the company forecast second-quarter revenue of $1.575 billion to $1.625 billion.
Murphy will remain chairman and chief executive of the combined company. Three Lumentum directors, including its chief executive, Michael Hurlston, will join Marvell’s board, which currently has seven members.
Closing is expected in the first half of 2028. It still needs approval from both companies’ stockholders and from regulators, along with other customary closing conditions.
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