Marvell is absorbing Lumentum through an all-stock transaction carrying an enterprise value of $115 billion, with an equity valuation near $80 billion. The acquisition unites custom semiconductor design with advanced optical networking equipment to address surging artificial intelligence infrastructure demands. The combined entity benefits from mutual backer Nvidia, which injected $2 billion into each company in March to advance optical technologies. Completion remains subject to regulatory reviews and shareholder votes, with the formal closing targeted for the first half of calendar year 2028.
Key points
The combined company will supply integrated artificial intelligence connectivity solution…: The combined company will supply integrated artificial intelligence connectivity solutions ranging from individual silicon to data center infrastructure.
The deal ranks among the tech sector's largest historical transactions, exceeding acquisi…: The deal ranks among the tech sector's largest historical transactions, exceeding acquisitions like Microsoft's purchase of Activision Blizzard.
Closing of the all-stock deal is projected for the first half of calendar year 2028, pend…: Closing of the all-stock deal is projected for the first half of calendar year 2028, pending shareholder and regulatory approvals.
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Custom chip designer Marvell has signed a deal to acquire optical chip and networking equipment maker Lumentum in an all-stock deal with an enterprise value of $115 billion (including debt) and an equity value of about $80 billion. Marvell will provide 4.5 shares of its common stock for each share of Lumentum.
This makes the deal one of the biggest acquisitions in tech history. It compares to Microsoft buying Activision Blizzard for $68.7 billion in 2022 and Dell buying EMC for $67 billion in 2016.
Interestingly, the two companies have one major shareholder in common: Nvidia. In March, as part of a multi-year agreement to purchase Lumentum’s advanced laser components, the GPU giant invested $2 billion to support Lumentum’s R&D efforts and fab expansion. Later that same month, Marvell announced that Nvidia invested $2 billion in an effort to beef up Marvell’s optical networking and chips portfolio.
With Lumentum, Marvell says it will become a leader in AI connectivity, with products that range from chips to data centers. The transaction is expected to close in the first half of calendar…
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