Marvell Technology agreed on Monday to acquire Lumentum in an all-stock transaction the companies value at $115B, implying about $1,132 per Lumentum share. Lumentum holders get 4.5 Marvell shares for each share they own.
On that exchange ratio, existing Marvell shareholders would own roughly 67 percent of the combined company and Lumentum holders about 33 percent on a fully diluted basis.
Lasers and switching on one balance sheet
Marvell brings electrical interconnect, custom silicon and switching. Lumentum brings high-performance lasers, optical transceivers, optical circuit switching and the specialised manufacturing that goes with them.
The companies put the addressable market they can chase together at $550B and claim more than $1B in annual run-rate cost synergies, with the deal accretive to non-GAAP earnings per share in the first year after closing.
Chief executive Matt Murphy described the combination as a once-in-a-generation chance to build a category leader and argued that connectivity would become as consequential as computing, memory and fabrication.
The 2028 problem
Both boards approved unanimously. Completion still depends on shareholder votes and regulatory clearance, and the companies are targeting the first half of calendar 2028, which is a long time to hold a premium in place.
Murphy is expected to remain chairman and chief executive. Three Lumentum directors, including CEO Michael Hurlston, would join the Marvell board.
The strategic logic is that AI clusters are running out of copper headroom and optics are moving closer to the die. The financial logic is less settled, since Marvell is issuing roughly half its own equity while chip valuations fall.
