Marvell agrees to buy Lumentum in $115B all-stock deal

Each Lumentum share converts into 4.5 Marvell shares, an implied enterprise value of $115B, or about $1,132 per Lumentum share. That price is a 23.9% premium to the October 28 close, the last session before deal talks surfaced. Equity value is $102.54B. After closing, Marvell holders would own about 67% of the combined company and Lumentum holders about 33%. Matt Murphy stays chairman and CEO, and three Lumentum directors, including CEO Michael Hurlston, will join Marvell's board.

Lumentum reported fiscal 2026 net revenue of $3.01B, up 83.2%, and $1.26B for its first quarter of fiscal 2027. Marvell says the combination widens its addressable market to $550B and targets more than $1B in annual cost savings. Marvell closed its $3.5B Celestial AI purchase in February. The companies expect the transaction to close in the first half of 2028.

For teams building AI infrastructure, the deal places electrical and optical links inside data centers under one supplier, which could shape pricing and lead times for interconnect hardware. Founders should watch whether rivals respond with similar combinations.