Marvell to Buy Lumentum for $115 Billion in All-Stock AI Deal — 2nd Update

By Connor Hart

Marvell Technology and Lumentum will merge in an all-stock deal valued at about $115 billion, including debt, combining two of the fastest-growing enablers of artificial intelligence.

The companies on Monday said the tie-up will bring together complementary electrical and optical technologies to address increasingly complex connectivity requirements across next-generation AI infrastructure.

"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," Marvell Chief Executive Matt Murphy said.

The deal will help to shape the next era of AI connectivity, he said. The combined company's total addressable market is projected to be $550 billion, as surging AI data traffic continues to necessitate rapid hardware innovation.

"Together with Marvell, we will meet our customers' complete interconnect needs," Lumentum Chief Executive Michael Hurlston said.

Under the terms of the agreement, Lumentum stockholders will receive a fixed-exchange ratio of 4.5 shares of Marvell common stock for each share of Lumentum common stock they own, the companies said.

The deal represents an implied value of about $1,132 per share of Lumentum common stock and a premium of roughly 24% based on each company's unaffected closing share price as of Oct. 28--the last trading day before market speculation regarding a potential transaction began, according to the companies.

Following the deal's close, current Marvell stockholders will own about two-thirds of the combined company on a fully diluted basis, while Lumentum stockholders will own roughly one-third.

The transaction is expected to close in the first half of calendar year 2028, subject to shareholder and regulatory approvals.

Murphy will continue to serve as CEO of the combined company. Three members of Lumentum's board, including Hurlston, will join Marvell's board, which currently consists of seven members.

In August, Murphy said that Marvell is seeing "a significant acceleration" in demand for its custom business, driven by AI hyperscalers who are increasingly looking to design their own computer chips.

Shares of Lumentum slipped 1.9%, to $826.35, in premarket trading. Marvell Technology's stock was roughly flat.

Write to Connor Hart at connor.hart@wsj.com

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November 02, 2026 08:09 ET (13:09 GMT)