Marvell Announces $115 Billion All-Stock Acquisition of Lumentum to Expand AI Infrastructure Reach
Marvell (MRVL) has entered into a definitive agreement to acquire optical-parts maker Lumentum (LITE) in an all-stock deal valued at approximately $115 billion. Under the terms, Lumentum shareholders will receive 4.5 Marvell shares for each share held, representing a 23.9% premium over recent closing prices. The transaction is expected to close in the first half of 2028, subject to regulatory and shareholder approvals. The merger aims to combine Marvell's data infrastructure chip design with Lumentum's expertise in lasers and optical components used to link AI chips within data centers. Management anticipates the combined entity will have an addressable market of $550 billion and expects over $1 billion in annual cost savings. While the deal has caused short-term investor concern regarding dilution and integration risks, Marvell has set ambitious long-term targets, including a fiscal 2031 revenue goal of $70 billion to $90 billion.
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Topics: AI Infrastructure M&A Optical Components Semiconductors
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Part of the story Marvell Technology Announces $115 Billion All-Stock Acquisition of Lumentum Holdings (19 articles)