❯ Marvell agrees to acquire Lumentum at a $115 billion enterprise value to integrate AI connectivity

An all-stock agreement fixes the exchange ratioMarvell and Lumentum announced a definitive agreement on November 2 for an all-stock acquisition with an implied $115 billion enterprise value. Lumentum shareholders will receive 4.5 Marvell shares for each share, implying about $1,132 per share and a 23.9% premium to unaffected October 28 prices.

Combine chips with optical componentsMarvell supplies network switching, custom silicon and electrical and optical interconnects. Lumentum supplies lasers, optical transceivers and optical circuit switches. Large AI systems require many processors to work together, making transmission distance, bandwidth and energy use important performance constraints. The companies aim to shorten development and deployment through closer electrical and optical co-design.

Closing is expected in early 2028Both boards approved the deal, which remains subject to shareholder and regulatory approvals and is expected to close in the first half of 2028. Existing Marvell and Lumentum shareholders would own about 67% and 33% of the combined company on a fully diluted basis. Management forecasts more than $1 billion in annual run-rate cost synergies and higher adjusted earnings per share in the first year.

▮ SIGNALAs AI clusters grow, moving data efficiently between chips is encouraging closer integration of electrical and optical suppliers.