Marvell, up more than 130% in 2026 as of the end of October, has agreed to acquire Lumentum to combine its optical interconnect expertise with Lumentum's laser technology. The companies expect $1 billion in annual synergies, mostly from lower cost of goods sold, and a $17.7 billion annual revenue run rate before synergies. Lumentum shareholders will receive 4.5 Marvell shares per share, valuing Lumentum at an enterprise value of $115 billion, or about $1,132 per share, roughly a 24% premium to its pre-announcement close. Lumentum reported fiscal first-quarter revenue up 137% to $1.26 billion, while Marvell guided current-quarter revenue up 52%. The deal is expected to close in the first half of calendar 2028, and the article views Lumentum as a discounted way to gain exposure to Marvell, although the deal could still fail.
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