- The transaction is expected to close in the first half of 2028
- The buy is expected to expand the combined company’s total addressable market to $550 billion
- In addition, Marvell today reported preliminary 3Q 2027 revenue consistent with previously provided guidance
Marvell is acquiring Lumentum in an all-stock deal that bets AI’s next leap runs on optical networking. The deal, valued at $115 billion, will create an optical component powerhouse is expected to expand the combined company’s total addressable market to $550 billion.
Under the terms of the agreement, Lumentum stockholders will receive a fixed exchange ratio of 4.500 shares of Marvell common stock for each share of Lumentum common stock they own, according to a press release about the deal.
"The transaction has an implied enterprise value of $115 billion for Lumentum, representing approximately $1,132 per share of Lumentum common stock and a premium of approximately 23.9% based on each company’s unaffected closing share price as of October 28, 2026, the last trading day before market speculation regarding a potential transaction began. Post-closing, current Marvell stockholders will own approximately 67% of the combined company on a fully diluted basis, while Lumentum stockholders will own approximately 33%," stated the press release.
Marvell’s decision to buy Lumentum comes as optical networking technology penetrates deeper into the data center. Optical networking is increasingly seen as the answer to performance and scale issues with traditional electrical interconnect, with Lumentum competing with the likes of Coherent, Ciena, Applied Optoelectronics (AOI) and a range of well-funded startups.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” Marvell CEO Matt Murphy said in a statement. “The companies that move first and help define this transition will set the standard for decades to come.”
The deal will combine Marvell’s electrical and optical interconnect portfolio, switching and custom silicon with Lumentum’s lasers, optical transceivers and optical circuit switching capabilities. The resulting company will be poised to address scale-across (data center to data center), scale-out (rack to rack), scale-up (chip to chip) and scale-in networks for AI.
Fierce Network has reached out to both companies, and analysts and vendors about the deal. This story will be updated with commentary throughout the day.