U.S. optical module leader Marvell announced the acquisition of optical chip leader Lumentum in an all-stock deal valued at approximately $115 billion.

BlockBeats news, November 2 — According to Marvell's announcement, the company and Lumentum have reached a definitive agreement under which Marvell will acquire Lumentum in an all-stock transaction.

Under the agreement, Lumentum shareholders will receive 4.500 shares of Marvell common stock for each share they hold. The transaction implies an enterprise value for Lumentum of approximately $115 billion, or about $1,132 per share, representing a premium of approximately 23.9% over the unaffected closing prices of both companies on October 28. Upon completion of the transaction, existing Marvell shareholders will own approximately 67% and Lumentum shareholders approximately 33% of the combined company.

The two companies said the merger will combine Marvell's capabilities in electrical and optical interconnect, switching, and custom silicon with Lumentum's strengths in high-performance lasers, optical transceiver modules, and optical circuit switching, with the goal of creating a full-stack connectivity portfolio for AI infrastructure and expanding the addressable market to approximately $550 billion. The transaction is expected to achieve more than $1 billion in annualized operating cost synergies and is expected to be accretive to Marvell's non-GAAP earnings per share in the first year after closing. Closing is expected in the first half of 2028, subject to approval by both companies' shareholders and regulators. Following closing, Matt Murphy will continue to serve as Chairman and Chief Executive Officer, and three Lumentum directors, including CEO Michael Hurlston, will join Marvell's board.