Marvell agrees to acquire Lumentum in an all-stock deal valued at $115 billion
Nov 3, 2026
Marvell Technology (NASDAQ: MRVL) and Lumentum Holdings (NASDAQ: LITE) announced on Monday, November 2, 2026 a definitive agreement under which Marvell will acquire Lumentum in an all-stock transaction.
Deal terms
According to the companies' announcement:
- Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share
- this implies a value of about $1,132 per Lumentum share
- the price represents a premium of about 23.9%, based on both companies' unaffected closing prices on October 28, 2026
- the deal implies an enterprise value of $115 billion for Lumentum
- after closing, Marvell shareholders are expected to own about 67% of the combined company and Lumentum shareholders about 33%, on a fully diluted basis
Approvals and timing
The deal requires approval from the shareholders of both companies, regulatory approvals and other customary conditions. The companies expect it to close in the first half of calendar 2028.
Leadership
Matt Murphy will remain Chairman and CEO of the combined company. Three Lumentum directors, including Lumentum CEO Michael Hurlston, will join Marvell's board.
Expected synergies and financial targets
The companies said they see a path to more than $1 billion of annual run-rate cost synergies. Marvell expects the deal to add to its non-GAAP earnings per share in the first year after closing. These are company expectations and may not be achieved.
What the companies do
Marvell designs semiconductors for data infrastructure, including chips for electrical and optical connections, networking switches and custom chips for cloud companies.
Lumentum makes lasers, optical modules and optical subsystems used in data centre connections, telecom networks, industrial manufacturing and sensing. Its products include optical transceivers and optical circuit switches, and it manufactures indium phosphide semiconductor components.
Why the companies say they are combining
Marvell CEO Matt Murphy said: "AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity." The companies said that combining Marvell's chips with Lumentum's lasers and optical components would allow them to design complete optical connection solutions for customers.
What optical connectivity is
In large data centres, thousands of processors need to exchange data quickly. Optical connections use light, sent through fibre-optic cables, to carry data. They can transfer large amounts of data over longer distances with lower power use per bit than many electrical connections. Lasers and transceivers convert electrical signals into light and back.
Advisers
Qatalyst Partners is lead financial adviser to Marvell, with J.P. Morgan and Goldman Sachs also acting as financial advisers and Wilson Sonsini Goodrich & Rosati as legal counsel. Citigroup and Evercore are financial advisers to Lumentum, with Davis Polk & Wardwell as legal counsel.
What an all-stock deal means
In an all-stock deal, the buyer pays with its own shares instead of cash. Because the exchange ratio is fixed, the value that Lumentum shareholders receive will depend on Marvell's share price when the deal closes.
Consolidation in semiconductors
Chip companies often buy other companies to add products, technology or manufacturing capabilities. Deals between semiconductor companies are usually reviewed by competition authorities in several countries, including the United States, the European Union and China, which can extend the time needed to complete them. That is one reason why large chip deals can take a year or more to close.
What to watch
Key items include the shareholder votes at both companies, reviews by competition authorities in different countries and the timing of the closing.
Risks and uncertainties
Large deals may not be completed on the expected timetable or at all, and regulators may require changes. Expected synergies may not be achieved. Semiconductor shares can be volatile.
What this means for investors
For Investing.one users following MRVL, the deal terms and approval process may be relevant. The information above is based on the companies' announcement.
Sources
This is not investment advice. Your capital is at risk.
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