November 3, 2026 / SemiMedia / — Marvell Technology and Lumentum have signed a definitive agreement for an all stock acquisition with an implied enterprise value of $115 billion, combining semiconductor and optical component capabilities for AI infrastructure.

Lumentum shareholders will receive 4.5 Marvell shares for each share they hold. Based on the companies’ unaffected October 28 closing prices, the consideration represents approximately $1,132 per Lumentum share and a 23.9 percent premium. The dollar value is based on those reference prices, while the exchange ratio is fixed.

After closing, existing Marvell shareholders are expected to own approximately 67 percent of the combined company on a fully diluted basis, with Lumentum shareholders owning about 33 percent.

The combination would bring together Marvell’s electrical and optical interconnect, switching and custom silicon technologies with Lumentum’s lasers, optical modules, optical circuit switching and compound semiconductor manufacturing. The companies intend to support closer electrical and optical co-design across connections ranging from distributed data centers to advanced chip packages.

Lumentum’s indium phosphide manufacturing and laser capabilities would add specialty production resources to Marvell’s chip design and packaging portfolio. The companies expect the combination to expand their total addressable market to $550 billion.

They also project more than $1 billion in annual run rate cost synergies and expect the transaction to increase Marvell’s non-GAAP earnings per share in the first year after closing.

Matt Murphy will remain chairman and chief executive officer. Three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s board after closing.

Both boards unanimously approved the agreement. Closing is expected in the first half of 2028, subject to approval by both companies’ shareholders, regulatory clearances and other customary conditions.