The proposed deal would be financed with stock and target the in-demand optical-networking market.
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Original headline: Marvell and Lumentum officially plan to combine. Here’s what to know.
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mergers and acquisitionssemiconductorsMarvellLumentum
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Marvell Technology agreed to acquire Lumentum Holdings in an all-stock deal with an enterprise value of $115 billion. Each Lumentum share would convert into 4.5 Marvell shares, which Marvell says implies $1,132 per share and a 23.9% premium, with closing expected in the first half of calendar 2028. Marvell expects more than $1 billion in annual run-rate cost savings, and the combination would bring its chip design together with Lumentum's laser production for AI optical connectivity. Marvell fell 3% to $190.43 and Lumentum dropped 6% to $788.51, with Lumentum trading below the implied deal value, a gap the article says usually reflects doubts about Marvell stock as deal currency, the long road to closing and antitrust review. Lumentum's Q1 FY2027 revenue was $1.26 billion, compared with the $1.25 billion consensus.
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Marvell Technology (MRVL) shares fell 12% on Thursday after reports it was in advanced talks to acquire optical components maker Lumentum Holdings (LITE), whose shares rose over 4% in early trading. Citing people familiar with the matter, Bloomberg reported a deal could be announced as soon as next week, though no final agreement has been reached and talks could still fail. Lumentum is valued at about $83 billion versus Marvell's $221 billion; backed by Nvidia, Lumentum makes lasers and optical components that move large volumes of data across networks and data centres as AI infrastructure grows. Marvell had about $3.92 billion in cash and equivalents at the end of its latest quarter, so Bernstein analysts cited by Reuters said a deal of this scale would probably need additional financing and could present integration challenges. Neither company has publicly confirmed the talks.
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