Marvell Technology has agreed to buy optical components maker Lumentum in an all-stock deal with an enterprise value of about $115 billion, the companies announced on 2 November 2026, in one of the largest technology deals of the year and a major bet on continued spending on artificial intelligence data centres.
FAKTA
- The deal values Lumentum at about $115 billion in enterprise value, including debt, with an equity value of $102.54 billion.
- Marvell will pay $1,132 per Lumentum share in stock, a 23.9 percent premium to Lumentum’s last unaffected closing price on 28 October, before deal talks were first reported.
- Marvell shareholders would own about 67 percent of the combined company and Lumentum shareholders about 33 percent.
- Marvell said it expects the transaction to close in the first half of 2028, but that it could extend to as late as August 2028 if regulatory approvals have not been obtained.
- The deal is proposed, not closed, and remains subject to regulatory and shareholder approvals.
Marvell Lumentum deal: why optical parts matter for AI
Lumentum makes optical components used to move data at high speeds between computer chips. As AI systems grow larger, moving vast amounts of data between chips quickly has become one of the main limits on data-centre performance, and demand for that optical hardware has risen sharply.
By buying Lumentum, a company roughly half its size, Marvell is betting that large technology companies’ AI spending will keep demand for optical components outstripping supply. Marvell said the deal would expand the combined company’s total addressable market to $550 billion.
A challenge to Broadcom, backed by Nvidia investment
Reuters described the deal as stepping up Marvell’s challenge to larger rival Broadcom during the AI spending boom. Both Marvell and Lumentum are companies in which AI chip maker Nvidia has invested $2 billion each, according to Reuters reporting.
Marvell’s largest purchase before this deal was its $10 billion buyout of Inphi, completed in earlier years. The Lumentum transaction is far larger and joins two companies whose products help move data between AI chips, broadening Marvell’s reach in one of the fastest-growing parts of the semiconductor industry.
| Measure | Detail |
|---|---|
| Enterprise value | About $115 billion |
| Equity value | $102.54 billion |
| Price per Lumentum share | $1,132 in Marvell stock |
| Premium to 28 October close | 23.9% |
| Marvell / Lumentum ownership | About 67% / 33% |
| Expected close | First half of 2028, possibly to August 2028 |
What happens next
The companies must now seek shareholder approval and clearance from regulators in the countries where they operate. Reuters noted a proposed United States ban on new Chinese optical transceivers could benefit Lumentum, which competes with US-listed Coherent and China’s Zhongji Innolight. Until approvals are complete, Marvell and Lumentum remain separate companies.
