Marvell Agrees To Acquire Lumentum In $115 Billion Stock Deal

Marvell Technology announced on Monday that it will purchase optical components manufacturer Lumentum in a transaction valued at approximately $115 billion. The all-stock deal is designed to integrate electrical and optical technologies, a move Marvell says is necessary to handle the connectivity requirements of expanding artificial intelligence infrastructure.

Under the terms of the agreement, Lumentum shareholders will receive 4.5 Marvell shares for every share of Lumentum they hold. Because the transaction relies on a fixed exchange ratio rather than cash, the final equity value fluctuates with the market price of Marvell stock. The companies expect the merger to close during the first half of 2028.

Matt Murphy, Marvell's chairman and chief executive officer, stated in a release that AI infrastructure is shifting toward optical connectivity. He described the transition as a rare opportunity, noting that firms that define this shift will set industry standards for decades.

This acquisition follows Marvell's earlier multibillion-dollar purchase of Celestial AI, a startup specializing in optical interconnectivity. Marvell's market capitalization has tripled over the past three years, while Lumentum's stock price has more than doubled so far in 2026. The deal comes as investors weigh the long-term sustainability of heavy spending on AI infrastructure.

Investors reacted to the news with modest declines. Marvell shares fell 3% before the open, while Lumentum stock dropped roughly 4% during premarket trading on Monday.