Marvell Agrees to Buy Lumentum in $115 Billion Stock Deal
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Marvell Technology will buy Lumentum, a maker of lasers and optical parts, paying entirely in its own shares. The definitive agreement was announced on November 2, 2026, at an implied enterprise value of $115 billion.
Why copper is giving way to light
The companies say AI data centers need ever more bandwidth, while copper-based connections run into physical limits. That is speeding a move toward optical links.
In their view, optical solutions are no longer simple, separate modules. They need electrical and optical parts designed together, which the companies call co-design. Joining forces is meant to give customers pre-validated optical products in high volume and faster time to market.
What each side brings
Marvell contributes electrical and optical interconnect, network switching and custom chips. Lumentum adds lasers, optical transceivers, optical circuit switching and specialized compound semiconductor manufacturing, including indium phosphide.
Marvell chairman and CEO Matt Murphy said: "The companies that move first and help define this transition will set the standard for decades to come."
The companies put the combined addressable market at $550 billion and see more than $1 billion in annual run-rate cost synergies. They expect the deal to add to Marvell's non-GAAP earnings per share in the first year after closing.
Terms and timing
The exchange ratio is fixed. Each Lumentum share converts into 4.500 Marvell shares, whatever the stock prices do before closing. That implies about $1,132 per Lumentum share, a premium of roughly 23.9% to the closing prices of October 28. That was the last trading day before market speculation about a deal began.
After closing, current Marvell holders would own about 67% of the combined company, and Lumentum holders about 33%, on a fully diluted basis. Both boards approved the agreement unanimously.
Closing is expected in the first half of calendar year 2028. It needs approval from both sets of stockholders, regulators and the usual closing conditions.
Leadership and quarterly figures
Murphy stays as chairman and CEO. Three Lumentum directors, including its CEO Michael Hurlston, would join Marvell's board, which has seven directors today.
Marvell also gave preliminary revenue for its fiscal third quarter of 2027. It matches earlier guidance: the midpoint is unchanged and the range is narrowed to plus or minus 2% from plus or minus 5%. Lumentum separately reported results for its first fiscal quarter of 2027.
Our view
A fixed exchange ratio ties the price to Marvell's share value until closing, so the headline figure can move. The long wait to 2028 leaves room for regulators and stockholders to weigh in. The promised synergies and the earnings gain are targets from the companies, and the first year after closing will test them.
Source: Marvell Technology and Lumentum