Marvell to acquire Lumentum in $115 billion stock-for-stock merger
The semiconductor and optics companies announced a definitive merger agreement that would create a dominant player in data center optical interconnect technology, with closing expected in the first half of 2028.
Marvell Technology Inc. and Lumentum Holdings Inc. have entered into a definitive merger agreement under which Marvell will acquire Lumentum at an enterprise value of $115 billion. The transaction would unite two leading competitors in the data center optics sector, as announced in a joint statement released on November 2nd.
Under the terms of the agreement, each Lumentum shareholder will receive 4.5 shares of Marvell stock for every share held. The companies valued this exchange at approximately $1,132 per share, representing a 23.9% premium relative to Lumentum's closing price on October 28, the final trading day before deal speculation began affecting the stock.
The transaction structure allocates roughly 67% of the combined entity to Marvell's existing shareholders and approximately 33% to Lumentum's shareholders. Bloomberg reported that the deal ranks as the second-largest technology sector transaction on record, behind only the SpaceX-xAI merger. Both companies' boards have unanimously approved the agreement, which is anticipated to complete during the first half of 2028, contingent upon regulatory clearance and shareholder approval.