Marvell to acquire Lumentum in $115bn AI deal
Key points
- Marvell agreed to acquire Lumentum in an all-stock transaction with an implied enterprise value of $115 billion.
- Lumentum shareholders will receive 4.5 Marvell shares per share, representing a 23.9% premium based on October 28 closing prices.
- The companies expect the combination to expand their addressable market to $550 billion and generate more than $1 billion in annual cost synergies.
Marvell Technology (NASDAQ:MRVL) agreed to acquire Lumentum (NASDAQ:LITE) in an all-stock transaction with an implied enterprise value of $115 billion, combining semiconductor and optical technologies for AI infrastructure.
The transaction values Lumentum at approximately $1,132 per share, representing a 23.9% premium to its October 28 closing price, while the deal's implied equity value is approximately $102.54 billion
"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," said Marvell Chairman and Chief Executive Officer Matt Murphy.
Under the agreement, Lumentum shareholders will receive 4.5 Marvell shares for each share they own, with existing Marvell shareholders expected to own approximately 67% of the combined company and Lumentum shareholders holding 33%.
The companies expect the transaction to close in the first half of 2028, subject to shareholder and regulatory approvals, and anticipate more than $1 billion in annual cost synergies.
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