Marvell Technology Agrees to Acquire Lumentum in $115 Billion All-Stock Deal

Marvell Technology agreed on November 2 to acquire Lumentum in an all-stock deal valued at $115 billion including debt. The transaction expands Marvell's total addressable market to an estimated $550 billion and positions the company against Broadcom in the market for custom chips and optical interconnects used in artificial-intelligence data centers.

Under the terms, Marvell will issue stock worth $1,132 per Lumentum share, a 23.9 percent premium to Lumentum's closing price on October 28. The equity value is $102.54 billion. Lumentum shareholders will receive 4.5 Marvell shares for each share they hold and will own roughly 33 percent of the combined company. Marvell shareholders will retain the remainder.

The boards of both companies unanimously approved the deal. Closing is expected in the first half of calendar 2028, subject to regulatory approvals and shareholder votes. Marvell agreed to pay a $5.8 billion termination fee if it withdraws support or accepts a competing bid.

Marvell expects approximately $37.5 billion of the expanded addressable market to come from interconnect products, a segment it projects will grow 65 percent annually to $65 billion by 2030. The acquisition adds Lumentum's optical component capabilities to Marvell's existing custom silicon portfolio.

The announcement follows a period of elevated capital spending by hyperscale data-center operators on AI infrastructure. Marvell has previously reported strong demand for its networking and storage products in that market. No material customer concentration or integration timeline details beyond the stated closing window have been released.

The deal is one of the larger technology acquisitions announced in 2026 and reflects continued consolidation around optical and custom-chip suppliers serving AI training and inference clusters. Regulatory review in the United States and other jurisdictions will determine the final timeline.