Marvell has announced that it has reached a final agreement to acquire Lumentum, a manufacturer of data center optical equipment, in an all-stock transaction. Under the terms of the agreement, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each share held, representing a premium of approximately 23.9%, with a total value of around $115 billion. Upon completion of the transaction, Marvell shareholders will hold approximately 67% of the combined company, while Lumentum shareholders will hold 33%. The deal is expected to close in the first half of 2028, subject to customary conditions such as regulatory approvals.
Marvell stated that the artificial intelligence (AI) infrastructure industry is currently at a turning point. The rapid growth in bandwidth demand and the physical limitations of copper-based connections are accelerating the transition to optical technologies. As AI infrastructure expands into increasingly complex architectures, particularly scaled and scalable ones, the industry is shifting from discrete modular components to highly integrated optical solutions. These solutions require close co-design of electrical and optical technologies to achieve higher bandwidth, performance, and energy efficiency.
Through this collaboration, Marvell's strengths in electrical and optical interconnects, network switching, custom XPUs, and advanced semiconductor technologies can be combined with Lumentum's expertise in high-performance lasers, optical transceivers, optical circuit switching (OCS), and specialized compound semiconductor manufacturing. This will enable deep integration and co-design of electrical and optical signal chains, offering customers a highly complementary product portfolio.
Over the past two years, Marvell has continuously increased its investment in expanding data center connectivity, acquiring Celestial AI and Polariton Technologies to build next-generation optical interconnect platforms.