Marvell Technology Acquisition of Lumentum May Prompt Ciena and Cisco to Diversify Optical Suppliers
Bank of America analysts suggest that Marvell Technology's (MRVL) proposed acquisition of Lumentum Holdings (LITE) could trigger a shift in the optical component supply chain. The deal would consolidate control over critical laser technologies used extensively across the networking industry. As a result, major networking equipment providers such as Ciena (CIEN) and Cisco (CSCO) may seek to diversify their supplier base to mitigate risks associated with increased concentration. This potential shift could alter competitive dynamics within the optical communications sector as companies react to the changing landscape of component availability.
Tickers: $CIEN $CSCO $LITE $MRVL
Topics: Mergers and Acquisitions Optical Components Supply Chain