Marvell to Buy Lumentum in $115B Optics Deal

Marvell Technology agreed on Nov. 2, 2026, to acquire optical components maker Lumentum Holdings in an all-stock deal that values Lumentum at an implied enterprise value of $115 billion, betting that AI data centers will increasingly move data with light rather than copper.

Under the definitive agreement, Lumentum shareholders will receive 4.500 Marvell shares for each Lumentum share, or about $1,132 per share, according to the companies' joint press release. That is a premium of about 23.9% to Lumentum's unaffected closing price on Oct. 28, the last trading day before deal speculation began.

Key takeaways

• Marvell will pay 4.500 of its shares per Lumentum share in a deal with an implied enterprise value of $115 billion.
• Marvell holders will own about 67% of the combined company and Lumentum holders about 33%, on a fully diluted basis.
• The companies expect closing in the first half of calendar 2028, pending shareholder and regulatory approvals.

Marvell Lumentum deal terms

Both boards approved the agreement unanimously. Matt Murphy will stay on as chairman and CEO of the combined company. Three Lumentum directors, including CEO Michael Hurlston, will join Marvell's seven-member board.

Marvell said it has "line of sight" to more than $1 billion in annual run-rate cost synergies. Its investor presentation, filed with the SEC, says those savings come primarily from cost of goods sold. The company expects the deal to add to non-GAAP earnings per share in the first year after closing.

The presentation puts pro forma revenue at $17.7 billion before synergies, based on Marvell's Aug. 27, 2026, guidance. Marvell also said preliminary revenue for its fiscal third quarter of 2027 was in line with guidance, and it narrowed the guidance range to plus or minus 2% from plus or minus 5%.

Why optical connectivity matters for AI

Marvell sells custom silicon, switching and electrical and optical interconnect chips. Lumentum makes lasers, optical transceivers and optical circuit switches. Together, the companies say, they can serve every link in an AI cluster, from chip-to-chip connections to links between data centers.

"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity," Murphy said in the release. "The companies that move first and help define this transition will set the standard for decades to come."

Hurlston said: "Joining Marvell creates a company uniquely positioned to capitalize on a market opportunity of $550 billion." The presentation says that combined addressable market figure applies to calendar 2030, compared with about $400 billion for Marvell alone and more than $90 billion for Lumentum.

Context: Nvidia ties and a crowded optics field

Lumentum is already a key supplier to Nvidia. In March 2026, Nvidia said it would invest $2 billion in Lumentum under a nonexclusive, multiyear agreement that includes a multibillion-dollar purchase commitment for advanced laser components and support for a new U.S. fab.

TechCrunch described the deal as one of the largest in tech history, larger than Microsoft's $68.7 billion purchase of Activision Blizzard and Dell's $67 billion deal for EMC. Fierce Network noted that Lumentum competes with Coherent, Ciena, Applied Optoelectronics and several startups.

What's next

Marvell plans to file a Form S-4 registration statement with a joint proxy statement and prospectus. Both companies' shareholders must approve the deal, and it needs regulatory clearance. In a Nov. 2 email to suppliers filed with the SEC, Lumentum executive vice president Matthias Van Broekhoven wrote, "Until the transaction closes, it is business as usual."

FAQ

How much is Marvell paying for Lumentum?
The deal has an implied enterprise value of $115 billion, or about $1,132 per Lumentum share, paid entirely in Marvell stock at 4.500 shares per Lumentum share.

When will the Marvell-Lumentum merger close?
The companies expect it to close in the first half of calendar 2028, subject to shareholder and regulatory approvals.

Who will run the combined company?
Marvell CEO Matt Murphy will remain chairman and CEO. Lumentum CEO Michael Hurlston and two other Lumentum directors will join Marvell's board.

References

• Marvell and Lumentum to Combine, Creating a Category Leader in AI Connectivity — Marvell Technology (Nov. 2, 2026)
• Lumentum Holdings Inc. Form 8-K, Exhibit 99.2 (investor presentation) — U.S. SEC (Nov. 2, 2026)
• Lumentum Holdings Inc. Form 425 (supplier and partner email) — U.S. SEC (Nov. 2, 2026)
• NVIDIA Announces Strategic Partnership With Lumentum to Develop State-of-the-Art Optics Technology — NVIDIA (March 2, 2026)
• In one of the largest deals in tech history, Marvell buys Lumentum for $115B — TechCrunch (Nov. 2, 2026)
• Marvell buys Lumentum in $115B AI networking power play — Fierce Network (Nov. 2, 2026)