Marvell to buy Lumentum in $115bn all‑stock deal, the second‑largest tech transaction

US semiconductor group Marvell Technology has announced an all‑stock acquisition of optical‑photonics provider Lumentum, valuing the target at an implied enterprise value of $115 billion.

The transaction sets the price at roughly $1,132 per Lumentum share, representing a premium of about 23.9 percent based on each company’s closing price on 28 October. Once completed, current Marvell shareholders will hold around 67 percent of the combined entity, with Lumentum shareholders owning about 33 percent on a fully diluted basis.

Both companies, based in California, say the deal will merge Marvell’s capabilities in electrical and optical interconnect, network switching, custom XPU and advanced semiconductor technologies with Lumentum’s expertise in high‑performance lasers, optical transceivers, optical circuit switching and specialised compound‑semiconductor manufacturing.

Shares in Marvell and Lumentum each fell by more than 10 percent on 2 November following the announcement, as analysts view the move as a bid to capitalise on the AI data‑centre boom. Reuters estimates the deal values Lumentum at about 33 times its projected core operating profit for the next 12 months, more than double the industry median.

Marvell’s chair and CEO Matt Murphy described the acquisition as an opportunity to shape the next era of AI connectivity, while Lumentum CEO Michael Hurlston highlighted the need for rapid hardware innovation to meet surging AI data traffic.

Source: Silicon Republic. Photo: CHINA YU / Pexels.