Marvell to Acquire Lumentum in $115 Billion All-Stock Deal

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Marvell Technology and Lumentum announced on Monday, November 2, that they have entered into a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction, according to the companies’ joint press release. The deal gives Lumentum an implied enterprise value of $115 billion. Lumentum stockholders will receive a fixed exchange ratio of 4.500 shares of Marvell common stock for each Lumentum share they own, worth approximately $1,132 per share — a premium of approximately 23.9% to the unaffected closing prices on October 28, 2026, the last trading day before speculation about a transaction began. Closing is expected in the first half of calendar year 2028, subject to approval by both companies’ stockholders and regulators, and the two companies will operate separately until then.

Both boards approved the agreement unanimously. After closing, current Marvell stockholders will own approximately 67% of the combined company on a fully diluted basis and Lumentum stockholders approximately 33%, the companies said. Reuters reported that the terms give the deal an equity value of $102.54 billion, making it one of the biggest transactions of 2026 and a direct challenge to larger rival Broadcom. Because the exchange ratio is fixed, the value Lumentum stockholders ultimately receive will move with Marvell’s share price between now and closing. The agreement replaces the stage this desk noted last week, when Bloomberg reported the companies were in advanced talks with no agreement and no price disclosed.

The companies framed the combination as a bet that AI data centers are shifting from copper to optical connections, as growing bandwidth requirements run into the physical limits of copper. The deal joins Marvell’s electrical and optical interconnect, switching and custom silicon with Lumentum’s lasers, optical transceivers and optical circuit switching. Marvell said the combination expands the combined company’s total addressable market to $550 billion, provides line of sight to more than $1 billion in annual run-rate cost synergies, and is expected to add to Marvell’s non-GAAP earnings per share in the first year after closing. “AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” Marvell Chairman and CEO Matt Murphy said in the release.

Murphy will continue as chairman and CEO of the combined company, and three members of Lumentum’s board, including President and CEO Michael Hurlston, will join Marvell’s board, which currently has seven directors, the companies said. What happens next is a long approval path: Marvell intends to file a registration statement and joint proxy with the SEC, both sets of stockholders must vote, and regulators must clear the deal. Readers can track further developments on our Corporate America desk.

Educational coverage — not tax or investment advice.