TLDR
- Marvell will buy Lumentum in an all-stock deal valued at $115 billion.
- Lumentum holders get 4.500 Marvell shares for each Lumentum share, a 23.9% premium.
- Marvell closed at $196.40 on Friday, down 10.05%, and sits at $197.50 pre-market.
- The deal is expected to close in the first half of 2028.
- Marvell expects more than $1 billion in annual cost synergies.
Marvell Technology (MRVL) agreed to buy Lumentum (LITE) in an all-stock deal valued at $115 billion. The announcement came Monday.
Marvell Technology, Inc., MRVL
Marvell stock closed at $196.40 on Friday, down $21.94, or 10.05%. In pre-market trading Monday, it was up 0.56% at $197.50.
Lumentum fell 8.57% in the same session. Since talks were first reported late last month, Lumentum has dropped about 8% and Marvell about 22%.
$MRVL TO ACQUIRE $LITE IN $115B ALL-STOCK DEAL
Marvell has agreed to acquire Lumentum in an all-stock transaction valued at approximately $115B in enterprise value, combining two major suppliers of AI infrastructure and optical networking technology.
Under the agreement:
— Wall St Engine (@wallstengine) November 2, 2026
The selloff in chip stocks picked up speed after Intel’s weak forecast. Both stocks moved lower with the group.
Deal Terms
Lumentum holders will receive a fixed 4.500 Marvell shares for each Lumentum share. That implies about $1,132 per Lumentum share.
The price is a premium of about 23.9% to the unaffected close on October 28. That was the last trading day before deal speculation began.
After closing, Marvell holders will own about 67% of the combined company. Lumentum holders will own the other 33%.
Both boards approved the deal unanimously. Matt Murphy will stay on as Chairman and CEO.
Three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s seven-member board. Closing needs approval from stockholders of both companies and from regulators.
Strategy and Numbers
Marvell says the deal expands its total addressable market to $550 billion. It also expects the deal to add to non-GAAP earnings per share in year one after closing.
The company sees a line of sight to more than $1 billion in annual run-rate cost synergies. It also expects gains in long-term revenue growth and margins.
Murphy called the shift toward optical connectivity “an opportunity that comes along once in a generation.” Hurlston said the pairing lets the two firms meet customers’ full interconnect needs.
Lumentum competes with Coherent and China’s Zhongji Innolight. It could also gain from a proposed US ban on new Chinese optical transceivers.
Lumentum is about half the size of Marvell. Nvidia invested $2 billion in each company earlier this year.
This is Marvell’s largest purchase since its $10 billion Inphi buyout in 2021. In February, it closed a $3.5 billion deal for Celestial AI.
Marvell’s market value has climbed to more than $170 billion. Its stock hit a record high in June after Nvidia CEO Jensen Huang called it the next “trillion-dollar company.”
Marvell’s annual revenue rose from $3 billion in fiscal 2021 to $8.2 billion in fiscal 2026. In August, it signed a deal worth up to $120 billion in sales through fiscal 2033 to supply chips alongside Google’s AI processors.
The deal is expected to close in the first half of calendar 2028.
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