Marvell to Buy Lumentum for $115 Billion in All-Stock AI Deal — 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, adding that the deal will help to shape the next era of AI connectivity.
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 Monday.
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, the companies said.
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.
Shares of Lumentum climbed 2.5%, to $861.40, in premarket trading. Marvell Technology's stock ticked 0.7% higher, to $197.80.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
November 02, 2026 07:53 ET (12:53 GMT)
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