Marvell and Lumentum plan $1,132-per-share stock deal for optical networking
Marvell Technology is combining with Lumentum Holdings in a massive stock deal.
The short version
- Marvell is offering about $1,132 per share to buy the optical-networking company.
- The deal values Lumentum shares at 24% above their recent trading price.
- Both companies expect the transaction to close in early 2028.
Why it matters to you. For your business, this massive consolidation shows just how much money tech giants are pouring into the physical infrastructure that powers data centers.
Marvell Technology, the chipmaker, and Lumentum Holdings, the optical-components maker, officially plan to combine in a massive deal meant to target the fast-growing optical-networking market. Marvell will finance the entire transaction through stock, offering about $1,132 per Lumentum share. That price sits 24% above where those shares traded on Oct. 28, just before rumors started swirling about a possible combination.
Optical technologies have become key to moving artificial-intelligence data at high speeds between server racks. “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 release.
Marvell held a $172 billion market capitalization as of Friday’s close, while Lumentum was worth $76 billion after seeing its stock essentially double this year. Once the transaction closes, Marvell shareholders will own about two-thirds of the combined business. The companies expect the deal to be completed in the first half of 2028, though it is still subject to approval by shareholders and regulators.
Shares of Marvell ticked up about 1% in premarket trading on Monday, and Lumentum’s stock climbed more than 2%.
