Marvell to Acquire Lumentum for $115 Billion

Marvell Technology announced Monday it will purchase Lumentum in an all-stock transaction valued at approximately $115 billion.

The acquisition aims to integrate electrical and optical technologies to meet the growing connectivity requirements of artificial intelligence infrastructure. Matt Murphy, Marvell's chairman and CEO, stated that AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity. He described the opportunity as rare and noted that companies defining this transition will set standards for decades.

Under the terms of the agreement, Lumentum shareholders will receive 4.5 Marvell shares for every share they own. Because the deal uses a fixed ratio without cash consideration, the final value fluctuates with Marvell's stock price. The companies expect to close the transaction during the first half of 2028.

The move follows a multibillion-dollar acquisition of Celestial AI earlier this year. Marvell purchased the startup, which focuses on optical interconnectivity, to strengthen its position in the sector. Recent market trends show a rising reliance on optical connections to support the chips used for training and running large language models.

Marvell's market value has tripled over the past three years on strong AI performance, while Lumentum's stock has more than doubled in 2026. Despite these gains, both companies saw their shares dip in premarket trading. Marvell shares fell 3%, and Lumentum shares declined 4% before the opening bell.