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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