Marvell to Buy Lumentum for $115 Billion
The all-stock deal values Lumentum at $102.54 billion and expands Marvell's total addressable market to $550 billion, challenging rival Broadcom in the AI infrastructure market
Story timeline3 updates
The deal is expected to close during the first half of 2028.
The companies expect the transaction to close in the first half of 2028.
Story published. The all-stock deal values Lumentum at $102.54 billion and expands Marvell's total addressable market to $550 billion, challenging rival Broadcom in the AI infrastructure market
Marvell Technology is acquiring Lumentum in an all-stock deal valued at $115 billion, including debt, to strengthen its position in the artificial intelligence infrastructure market and challenge rival Broadcom. The deal targets the hot optical-networking market and expands Marvell's total addressable market to $550 billion.
The acquisition gives Lumentum an equity valuation of $102.54 billion, with Marvell paying $1,132 per Lumentum share in stock, representing a 23.9% premium to Lumentum's last unaffected closing price on October 28. Marvell's market value has climbed to more than $170 billion, with its shares rising 2.8% in premarket trading on Monday.
The deal was announced on Monday, with trading in Lumentum shares halted. The acquisition could generate up to $120 billion in sales through fiscal 2033, and gives Google the right to purchase a $12.2 billion stake in Marvell.
## What it means The deal reflects growing confidence among chipmakers that Big Tech's AI spending boom will sustain demand for computing and data centre infrastructure for years. By acquiring Lumentum, Marvell is betting that demand for optical components used to transmit data at high speeds will continue to outstrip supply as technology companies expand their AI data centres.
## Why it matters The acquisition could strengthen Marvell's position in the race to supply technology for AI data centres, where Broadcom has emerged as a major player in custom-designed chips and networking hardware. The deal expands Marvell's presence in the market, challenging Broadcom's dominance and potentially altering the landscape of the AI infrastructure market.
The combined company's total addressable market of $550 billion presents a significant opportunity for growth, with the potential to generate substantial sales in the coming years. As the AI market continues to evolve, the acquisition of Lumentum by Marvell is likely to have a lasting impact on the industry.
