Marvell Signs $115 Billion Enterprise-Value Deal to Acquire Lumentum

The planned all-stock transaction would combine networking silicon with lasers and optical components for AI infrastructure. It remains subject to approvals and is expected to close in the first half of 2028.

Marvell and Lumentum announced a definitive agreement on 2 November under which Marvell would acquire the optical technology company in an all-stock transaction. Lumentum shareholders would receive 4.5 Marvell shares for each share they own. Based on the share prices used in the announcement, the terms imply an enterprise value of approximately $115 billion for Lumentum. Because the exchange ratio is fixed, the dollar value of the consideration can change with Marvell’s share price.

The agreement has been approved by both boards but still requires shareholder and regulatory approvals and other closing conditions. The companies expect a closing in the first half of 2028. Until then, they continue to operate independently. The announcement should not be read as a completed acquisition or as the launch of an integrated product.

The industrial rationale lies in the data path of large AI systems. Marvell develops switching, interconnect and custom silicon, while Lumentum brings lasers, optical transceivers, optical circuit switching and compound-semiconductor manufacturing capabilities. According to the companies, combining these assets after closing could support closer co-design of electrical and optical links across accelerators, servers and data centres. No measured performance gains for future combined products were provided in the merger announcement.

There is also a connection to Israel’s semiconductor industry. Marvell has offices in Petah Tikva and Yokneam and an existing silicon photonics collaboration with Israeli foundry Tower Semiconductor. In June 2026, Tower and Marvell said more than five million coherent photonic integrated circuits had been shipped through that partnership to Marvell customers. The new acquisition announcement, however, does not commit either company to additional development, manufacturing or investment in Israel.

If completed, the transaction would give Marvell a broader set of electrical and optical technologies under one corporate roof. For now, the confirmed event is a signed agreement to acquire those capabilities as bandwidth and power requirements rise across AI infrastructure.