Marvell shares fell on Monday after the company agreed to acquire Lumentum. The deal is valued at $115 billion.
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- Why Wall Street isn't exactly loving Marvell's $115B Lumentum deal
Marvell Technology (MRVL) announced an all-stock deal to acquire photonics company Lumentum (LITE) at a $115 billion enterprise value, including debt. Nvidia's Jensen Wong endorsed the deal, but most analysts were skeptical, questioning the timing amid problems in the chip sector and the financing. Analysts noted both stocks have traded volatilely over the past month, which makes using shares as currency risky when closing could take a long time. Some argue Lumentum's management is admitting it may not be well positioned to execute alone over the next two to three years, while Marvell must show what its stock is worth as currency. Market reaction to the deal has been largely negative.
- Marvell and Lumentum shareholders unite in panning merger deal: “It's a trash offer”
Marvell agreed to buy Lumentum in an all-stock deal, and shares of both companies fell Monday. Shareholders of both companies have criticized the offer, with one describing it as “a trash offer.”
- In one of the largest deals in tech history, Marvell buys Lumentum for $115B
Marvell, a custom chip designer, will acquire Lumentum in an all-stock deal with an enterprise value of $115 billion including debt and an equity value of about $80 billion, offering 4.5 Marvell shares for each Lumentum share. The deal ranks among the largest in tech history, compared with Microsoft's $68.7 billion purchase of Activision Blizzard in 2022 and Dell's $67 billion acquisition of EMC in 2016. Nvidia is a shared major shareholder: it invested $2 billion in Lumentum in March under a multi-year laser component agreement, and later that month invested $2 billion in Marvell. The transaction is expected to close in the first half of calendar 2028, subject to shareholder and regulatory approval.
- Marvell to buy Lumentum in all-stock deal, a massive bet on AI connectivity
Marvell said it will acquire optical component maker Lumentum in an all-stock, fixed-ratio deal with an implied enterprise value of $115 billion, aiming to meet growing connectivity demand from AI infrastructure. Each Lumentum share will be exchanged for 4.5 Marvell shares, so the deal's value will move with Marvell's share price, and it is expected to close in the first half of 2028. Chairman and CEO Matt Murphy said AI infrastructure is shifting toward optical connectivity, and the acquisition lets Marvell combine electrical and optical technologies. The move follows Marvell's multibillion-dollar purchase of Celestial AI earlier this year, and comes as its market value has more than tripled over three years. Lumentum's stock has more than doubled in 2026, while Marvell shares fell 3% and Lumentum about 4% before the bell.
- Marvell Could Be Making a $115 Billion Mistake With Lumentum Purchase
Marvell stock fell on Monday after the company agreed to acquire Lumentum at a value of $115 billion. The article provides no further details on the deal.
- Marvell to acquire Lumentum in $115 billion AI connectivity deal
Marvell Technology announced it will acquire Lumentum Holdings in an all-stock deal valued at $115 billion, which it calls one of the largest tech industry deals ever. Lumentum makes lasers, circuit switches and other products for data centers, and Marvell said the combined company would become a “category leader in AI connectivity.” The deal requires stockholder approval and is expected to close in the first half of 2028. Earlier this year Nvidia said it was buying a $2 billion stake in Lumentum, according to Bloomberg; after the announcement, Marvell shares fell more than 1% and Lumentum nearly 3%.
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