Marvell Technology has agreed to acquire optical networking company Lumentum in an all-stock transaction valued at approximately $115 billion, including debt, to expand its semiconductor and connectivity business for artificial intelligence infrastructure. The agreement, announced on November 2, 2026, will combine Marvell’s custom chip and networking technologies with Lumentum’s optical components used in data centers.
Under the official agreement, Lumentum shareholders will receive 4.5 Marvell common shares for each Lumentum share they own. The exchange ratio represents approximately $1,132 per Lumentum share, a 23.9% premium based on the companies’ unaffected closing share prices on October 28, 2026. Marvell Technology, Inc.
The acquisition ranks among the largest technology transactions, exceeding Microsoft’s $68.7 billion acquisition of Activision Blizzard and Dell’s $67 billion purchase of EMC. Following completion, existing Marvell shareholders are expected to own approximately 67% of the combined company, while Lumentum shareholders will hold the remaining 33%.
Marvell Expands Optical Networking Capabilities
Marvell Technology develops custom processors, networking chips, and semiconductor technologies used in cloud computing and AI infrastructure. Lumentum specializes in lasers, optical transceivers, optical circuit switching, and semiconductor manufacturing technologies.
The companies said their combined product portfolio would support optical connections across data centers and between processors, addressing increasing bandwidth requirements in AI computing systems. Marvell estimates that the acquisition will expand its total addressable market to $550 billion.
Marvell also expects the combination to generate over $1 billion in annual run-rate cost savings and contribute positively to adjusted earnings per share during the first year after closing. These projections remain subject to the successful integration of both businesses.
Nvidia Holds Investments in Both Companies
Nvidia is a common investor in Marvell and Lumentum, having announced separate $2 billion investments in both companies during March 2026. The investments were tied to agreements involving optical networking technologies and AI infrastructure development.
On March 2, Nvidia announced a partnership with Lumentum, including a multiyear commitment to purchase advanced laser components. The $2 billion investment was intended to support Lumentum’s research, development, and expansion of its U.S. semiconductor manufacturing facilities.
On March 31, Nvidia announced another $2 billion investment in Marvell as part of a partnership involving NVLink Fusion, custom AI processors, and silicon photonics technology. Both companies agreed to collaborate on technologies supporting high-speed connections between AI computing systems.
Acquisition Expected to Close in 2028
Marvell CEO Matt Murphy will remain chairman and chief executive of the combined company following the acquisition. Three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s board of directors.
Both companies’ boards have unanimously approved the agreement, with the transaction expected to close during the first half of 2028. Completion remains subject to shareholder approval, regulatory clearance, and customary closing conditions.
Featured image credits: Magnific.com
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