Marvell said it will acquire Lumentum in an all-stock transaction with an implied enterprise value of $115 billion.
The combination joins Marvell's strengths in electrical and optical interconnect, network switching, custom XPU and XPU attach and advanced semiconductor technologies with Lumentum's expertise in high-performance lasers, optical transceivers, optical circuit switching (OCS) and specialized compound semiconductor manufacturing. Following closing, the combined company is expected to offer a complementary portfolio spanning CMOS, silicon photonics, compound semiconductors, advanced packaging and manufacturing capabilities.
The companies said the combination is intended to enable deeper integration and co-design across the electrical and optical signal chain, positioning Marvell to deliver highly optimized connectivity solutions across a wide range of distances, from distributed data centers to connections within advanced semiconductor packages.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Marvell CEO Matt Murphy in a statement. “The companies that move first and help define this transition will set the standard for decades to come. By bringing together two leaders with highly complementary technologies, exceptional talent and specialized manufacturing capabilities, we intend to help shape the next era of AI connectivity and create exceptional stockholder value.”
“Joining Marvell creates a company uniquely positioned to capitalize on a market opportunity of $550 billion and generate significant, sustainable stockholder value,” said Lumentum CEO Michael Hurlston in a statement. “Surging AI data traffic requires rapid hardware innovation, and this combination enhances our ability to deliver next-generation solutions at scale. Together with Marvell, we will meet our customers' complete interconnect needs, spanning scale-across and scale-out today to scale-up and scale-in domains tomorrow. By offering extreme co-design around our customers' demanding requirements, we will help them achieve faster time to market, accelerated innovation cycles and category-defining performance.”
Lumentum brings compound semiconductor manufacturing and process technologies, including indium phosphide (InP), as well as high-speed and high-power laser capabilities. After closing, the combined company plans to bring together semiconductor design, advanced packaging and specialized manufacturing capabilities.
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%. The companies said the transaction isn't expected to close until the first half of calendar year 2028.
