Marvell to Acquire Lumentum in All-Stock Deal Valued at $115 Billion
November 4, 2026 · 2 min read
Marvell Technology has announced its agreement to acquire Lumentum, a manufacturer of optical communication devices, through an all-stock transaction. The deal implies an enterprise value of approximately 115 billion USD, with Lumentum shareholders receiving 4.5 shares of Marvell common stock for each share they hold. The acquisition is expected to close in the first half of 2028, pending approval from both companies' shareholders and regulatory bodies.
Following the completion of the acquisition, Marvell shareholders will own about 67% of the combined company, while Lumentum shareholders will hold approximately 33%. Marvell anticipates that the merger will generate over 1 billion USD in annual cost synergies and will enhance non-GAAP earnings per share in the first year following the transaction.
The merger aims to integrate the companies' technologies in the AI infrastructure connectivity sector. Marvell brings expertise in electrical and optical interconnects, network switching, custom XPUs, and advanced semiconductor technologies, while Lumentum contributes high-performance lasers, optical transceivers, optical cross-connects, and compound semiconductor manufacturing capabilities. The combined entity will target a market size estimated at 550 billion USD.
Lumentum also reported its financial results for the first quarter of the 2027 fiscal year, with revenues of 1.263 billion USD, reflecting a 136.5% year-over-year increase, and a net profit of 360 million USD. Non-GAAP net profit was reported at 461 million USD, with diluted earnings per share of 4.57 USD. The company expects its second-quarter revenues to reach between 1.575 billion and 1.625 billion USD.
Marvell has provided initial revenue guidance for the third quarter of the 2027 fiscal year, anticipating revenues to align with previous guidance while narrowing the expected revenue range to a fluctuation of 2%. This adjustment follows the company's quarterly closing procedures and audit review.