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

Deal structure and valuation details

The agreement involves an enterprise value of $115 billion with an equity value near $80 billion. Marvell will exchange 4.5 shares of its stock for every share held by Lumentum investors. This transaction includes the target company's existing debt obligations.

Strategic focus on AI growth

Executives state that optical connectivity represents a rare opportunity to shape the next era of artificial intelligence infrastructure. The combined entity aims to meet high-speed data demands expected to outstrip current supply levels for years. Both companies face scrutiny from investors worried about slowing cash flow and tightening profit margins in the sector.

Timeline and regulatory approval

Shareholders and regulators must approve the merger before the deal can officially close. The transaction is scheduled to complete during the first half of calendar year 2028 if all conditions are met.