Marvell Technology to Acquire Lumentum Holdings in $115 Billion All-Stock Deal
Marvell Technology (MRVL) has entered into an agreement to acquire Lumentum Holdings (LITE) in an all-stock transaction valued at approximately $115 billion. The deal, which is expected to close in the first half of 2028, aims to establish a dominant position in AI connectivity by combining Marvell's chip design capabilities with Lumentum's expertise in high-performance lasers and optical transceivers. The acquisition represents a significant long-term competitive move against Broadcom (AVGO), which currently holds a substantial market share in the laser and networking components sector. While Broadcom has seen massive growth—with AI semiconductor revenue tripling to $16.7 billion in its fiscal third quarter—the emergence of a larger, integrated rival could impact pricing power once current supply shortages in the optical component market stabilize.
Tickers: $AVGO $GOOGL $LITE $MRVL
Topics: Artificial Intelligence M&A Optical Connectivity Semiconductors