Marvell to Acquire Lumentum in $115 Billion All-Stock Deal
Chip designer Marvell has agreed to buy optical component maker Lumentum in an all-stock deal valued at $115 billion including debt, aimed at AI data center networking.
Chip designer Marvell has agreed to acquire Lumentum, a maker of optical chips and networking equipment, in an all-stock transaction that values the target at $115 billion including debt. The deal would rank among the largest acquisitions in the technology industry.
Under the terms, Marvell will issue 4.5 of its own shares for each Lumentum share. The equity value of the transaction is roughly $80 billion.
Betting on AI connectivity
The driver is the growing need for connectivity and data transfer capacity inside AI data centers. Marvell plans to combine Lumentum's optical technologies with its own chips and networking products, with the aim of strengthening its position in AI infrastructure.
The company says the merger would give it a portfolio stretching from chips to the data center itself, and it wants to become one of the leaders in AI interconnect technology.
Nvidia's role
Nvidia is a shared investor in both companies. In March it put $2 billion into each of them. The Lumentum investment came under a multi-year agreement covering the supply of advanced laser components, and was meant to support research and development and expand manufacturing capacity. The Marvell investment was aimed at strengthening the company's optical networking and chip portfolio.
What comes next
The transaction still needs approval from shareholders of both companies and from regulators. If those are granted, completion is expected in the first half of 2028.
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