Marvell will acquire Lumentum at an enterprise value of $115 billion in one of the largest technology mergers on record, the companies said Monday.
The big picture: AI infrastructure is shifting from electrical to optical connections between chips, and the two companies are buying their way to the front of that shift. Marvell chairman and CEO Matt Murphy called it an opportunity that comes along once in a generation.
By the numbers: Lumentum holders receive 4.500 Marvell shares each, an implied $1,132 per share and a 23.9% premium to the October 28 unaffected close. Marvell holders keep about 67% of the combined company on a fully diluted basis, Lumentum holders 33%.
- "Joining Marvell creates a company uniquely positioned to capitalize on a market opportunity of $550 billion and generate significant, sustainable stockholder value," said Lumentum president and CEO Michael Hurlston.
Zoom in: The companies guide to more than $1 billion in annual run-rate cost synergies and say the deal turns accretive to Marvell non-GAAP earnings per share in the first year after close.
- The all-stock structure pays Lumentum investors in Marvell equity, so both sides carry the AI capex risk after the deal closes.
Yes, but: Investors sold the news. Marvell fell as much as 8% Monday and Lumentum dropped 12.5%, days after a selloff hit shares tied to artificial intelligence.
What's next: The deal is expected to close in the first half of 2028, a long runway for an AI infrastructure thesis to hold up.
Why it matters: At $115 billion this ranks among the biggest technology mergers ever struck, and it is a bet that the bottleneck in AI buildouts has moved from compute to the wires and lasers running between the chips.
