Marvell Technology to Acquire Lumentum in All-Stock Transaction
Marvell Technology (MRVL) has entered into an agreement to acquire Lumentum Holdings Inc. (LITE) through an all-stock deal. Under the terms of the acquisition, Lumentum shareholders will receive 4.5 shares of Marvell for every share of Lumentum they own. The transaction is structured without cash or a collar. The deal implies that Lumentum will contribute approximately 33% of the pro forma operating income to the combined entity while receiving an equivalent 33% stake in the new company. Following the announcement, Lumentum's stock price experienced significant volatility, dropping 18.6% as it began trading at a spread relative to the Marvell exchange ratio.
