Marvell to Acquire Lumentum in $115 B All‑Stock Deal, Creating AI Connectivity Giant
Marvell has signed an all‑stock agreement to buy optical‑chip maker Lumentum for an enterprise value of $115 billion.
Wow! Custom chip designer Marvell has signed an all‑stock agreement to acquire optical chip and networking equipment maker Lumentum.
The deal carries an enterprise value of $115 billion (including debt) and an equity value of roughly $80 billion. Marvell will exchange 4.5 shares of its common stock for each Lumentum share.
This transaction places the acquisition among the biggest in tech history, comparable to Microsoft’s $68.7 billion purchase of Activision Blizzard in 2022 and Dell’s $67 billion acquisition of EMC in 2016.
Both companies share a major shareholder: Nvidia. In March, Nvidia invested $2 billion in Lumentum as part of a multi‑year agreement for advanced laser components and fab expansion. Later that month, Nvidia pledged another $2 billion to Marvell to strengthen its optical networking and chip portfolio.
Marvell says the combined entity will become a leader in AI connectivity, offering products that span from chips to data‑center solutions.
The transaction is slated to close in the first half of calendar year 2028, pending approval from shareholders and regulators.
With this monumental deal, Marvell aims to reshape the landscape of AI‑driven networking.
