Marvell Seals Historic $115 Billion Deal to Acquire Lumentum in AI Bet
In one of the largest technology mergers ever recorded, semiconductor giant Marvell Technology (NASDAQ: MRVL) has agreed to acquire optical components maker Lumentum Holdings (NASDAQ: LITE) in an all-stock deal valued at an enterprise value of $115 billion.
Announced on November 2, 2026, the agreement represents a 23.9% premium over Lumentum’s unaffected closing share price on October 28, 2026. Under the terms, Lumentum stockholders will receive a fixed exchange ratio of 4.5 shares of Marvell stock for each Lumentum share. Marvell shareholders will own approximately 67% of the combined company, with Lumentum shareholders holding the remaining 33%.
The deal is a strategic push to strengthen the companies’ position in the rapidly growing AI data center infrastructure market. By combining Marvell’s electrical interconnect, network switching, and custom silicon capabilities with Lumentum’s high-performance lasers, optical transceivers, and optical circuit switching technology, the merged company aims to address a $550 billion total addressable market.
Three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s board after the transaction closes. The merger is expected to be completed in the first half of 2028, pending regulatory and shareholder approvals. Bloomberg called it the largest M&A deal of 2026 by equity value.
Source: TechXplore – Marvell, Lumentum merge in $115 billion deal amid AI spending jitters