Marvell buys Lumentum for $115B to speed up links inside AI data centres

What happened. Marvell Technology and Lumentum signed a definitive agreement. Marvell buys Lumentum in an all-stock deal. Each Lumentum share becomes 4.5 Marvell shares. By the companies' numbers that is about $1,132 per Lumentum share and a premium of about 23.9% to the October 28 close, the last trading day before deal talk began. They put Lumentum's value including debt at $115 billion.

Who owns what. After closing, current Marvell holders will own about 67% of the combined company and Lumentum holders about 33%. Matt Murphy stays chairman and CEO. Three Lumentum directors, including CEO Michael Hurlston, join Marvell's board. Both boards approved the deal unanimously.

Why do it. Marvell makes electrical and optical links, network switches and custom chips for cloud companies. Lumentum makes high-power lasers, optical transceivers (modules that turn a signal into light and back) and has its own indium phosphide chip plants. The companies expect more than $1 billion a year in cost savings and say the deal should add to Marvell's adjusted earnings per share in the first year after closing. That is their forecast, not a fact.

Background. Per CNBC (a Reuters report), Lumentum is roughly half Marvell's size. Nvidia invested $2 billion in each of the two companies earlier this year. Since the talks were first reported in late October, Lumentum shares fell about 8% and Marvell about 22% in a wider chip selloff. It is Marvell's biggest purchase since it bought Inphi for $10 billion in 2021.

What is not known. Whether regulators in different countries will approve the deal, and on what terms. How the deal value will move, since it depends on Marvell's share price until closing. This is an overview, not advice.

Hechos confirmados

• On November 2, 2026 Marvell and Lumentum signed a definitive agreement for Marvell to buy Lumentum in an all-stock deal.^[1][2]
• Lumentum holders will receive 4.5 Marvell shares for each Lumentum share.^[1][2]
• The deal implies an enterprise value of about $115 billion for Lumentum, about $1,132 per share, a premium of about 23.9% to the October 28, 2026 close.^[1][2]
• After closing, Marvell holders will own about 67% of the combined company and Lumentum holders about 33%.^[1]
• Closing is expected in the first half of 2028, subject to shareholder and regulatory approvals.^[1]
• The companies expect more than $1 billion in annual run-rate cost savings.^[1]
• Matt Murphy stays chairman and CEO; three Lumentum directors, including CEO Michael Hurlston, join Marvell's board.^[1]
• Nvidia invested $2 billion each in Marvell and Lumentum in 2026.^[2]
• Since the talks were first reported, Lumentum shares fell about 8% and Marvell about 22%.^[2]
• It is Marvell's largest purchase since its $10 billion buyout of Inphi in 2021.^[2]

Implicaciones

• ConfirmadoLumentum will stop being a separate listed company after closing; its holders become Marvell holders.
• Nuestra lecturaThe market for AI data centre optics is concentrating further in a few big players. This is our view.
• Nuestra lecturaThe deal shows big companies still betting on years of AI spending despite the chip selloff. This is our view.

Todavía no se sabe

• Whether regulators approve the deal and on what terms
• The final value, which depends on Marvell's share price
• Whether the promised $1 billion in savings materialises

A quién afecta

United States, World. People who hold chip stocks or follow AI infrastructure

Fuentes

1. Marvell Technology (investor relations): Marvell and Lumentum to Combine, Creating a Category Leader in AI Connectivity 2 de noviembre de 2026 · oficial
2. CNBC (Reuters): Marvell to buy Lumentum in $115 billion deal in AI data-center bet 2 de noviembre de 2026 · medios