Marvell agrees to buy optics maker Lumentum in $115 billion all-stock deal to bet on AI data centres

Marvell Technology announced on Monday, 2 November 2026, a definitive agreement to acquire optical-components maker Lumentum in an all-stock transaction that gives Lumentum an implied enterprise value of $115 billion, according to the companies’ press release.

Terms

• Lumentum shareholders will receive a fixed 4.5 Marvell shares for each Lumentum share — about $1,132 per share, a premium of roughly 23.9% to the unaffected closing price of 28 October, before deal speculation began.
• After closing, Marvell shareholders will own about 67% of the combined company and Lumentum shareholders about 33%.
• Reuters put the equity value at about $102.5 billion. A regulatory filing cited by The Globe and Mail shows break fees of $5.8 billion (Marvell), $2.9 billion (Lumentum) and $3.2 billion payable by Marvell if regulators block the deal.
• The boards approved the deal unanimously; it needs shareholder and regulatory approvals and is expected to close in the first half of 2028. Marvell CEO Matt Murphy will lead the combined company; Lumentum CEO Michael Hurlston and two other Lumentum directors will join Marvell’s board.

Why it matters

Lumentum makes lasers and optical parts that carry data through AI data centres as light rather than over copper. Reuters described the deal as a challenge to larger rival Broadcom and one of the boldest bets yet that Big Tech’s AI spending will last. Marvell says the combination expands its addressable market to $550 billion and targets more than $1 billion in annual cost synergies — company projections, not results. Reuters noted that Nvidia invested $2 billion in each company earlier this year and that both stocks had fallen since talks were first reported amid a broad chip sell-off.