With Lumentum’s lasers and optical components, Marvell aims to expand its AI connectivity offerings.
Marvell Technology and Lumentum signed the agreement today. Lumentum shareholders will receive 4.5 shares of Marvell for each share of Lumentum they own. That amounts to approximately $1,132 per share. The premium is about 23.9 percent compared to the closing price on October 28, the last trading day before the market began speculating about a potential deal.
After the deal closes, Marvell’s current shareholders will own about 67 percent of the combined company. Lumentum’s shareholders will own the remaining 33 percent.
According to both companies, copper connections in AI infrastructure are reaching physical limits, while demand for bandwidth continues to rise rapidly. Optical technology is expected to solve that problem. To achieve this, however, electrical and optical components must be designed in much closer collaboration.
Lasers and switches under one roof
Marvell brings its expertise in electrical and optical interconnects, network switching, and custom XPUs. Lumentum provides high-performance lasers, optical transceivers, and optical circuit switching (OCS). It also produces compound semiconductors, including indium phosphide (InP). Together, the companies aim to provide connections over a wide range of distances: from distributed data centers to connections within advanced chip packages.
Marvell CEO Matt Murphy describes this as a once-in-a-generation opportunity. “The companies that move first and help define this transition will set the standard for decades to come,” Murphy said.
Murphy will remain chairman and CEO following the acquisition. Three members of Lumentum’s board, including Hurlston, will join Marvell’s board, which will then have seven members. However, shareholders and regulators must still approve the deal. Marvell also confirmed today that preliminary revenue for the third quarter of fiscal year 2027 is in line with the previous forecast. At the same time, Lumentum released its first-quarter results.
The acquisition is expected to close in the first half of 2028.