Marvell to acquire Lumentum in $115 billion AI connectivity deal
The all-stock transaction aims to challenge rival Broadcom as demand for optical components in AI data centres rises.
Marvell Technology announced on Monday its intention to purchase optical components manufacturer Lumentum in an all-stock deal valued at $115 billion, including debt. According to Moneycontrol, the move is intended to capitalise on the surge in artificial intelligence spending and compete with rival Broadcom.
Marvell CEO Matt Murphy, who will serve as chairman and CEO of the merged entity, stated that AI infrastructure is shifting toward optical connectivity. He said the company intends to shape the next era of AI connectivity and create value for stockholders.
Lumentum produces photonic products, such as high-performance lasers and optical components used in cloud computing and communications networks. Earlier this year, Nvidia invested $2 billion each in both Marvell and Lumentum.
Under the terms of the agreement, Marvell will provide $1,132 per share in stock, representing a 23.9 per cent premium to Lumentum's closing price on October 28. Lumentum shareholders will receive 4.5 Marvell shares for every share they hold, resulting in approximately 33 per cent ownership of the combined company.
The boards of both companies have unanimously approved the transaction. The deal is expected to be completed during the first half of calendar 2028.