Marvell and Lumentum Announce All-Stock Merger Agreement Valued at $115 Billion
Marvell and Lumentum have signed a definitive all-stock merger agreement to create a leader in AI connectivity, expecting over $1 billion in annual cost synergies.
U.S. semiconductor firm Marvell Technology (NASDAQ: MRVL) and optical component supplier Lumentum Holdings (NASDAQ: LITE) announced on November 2, 2026, that they have entered into a definitive merger agreement. Under the terms, Marvell will acquire Lumentum in an all-stock transaction, where Lumentum shareholders will receive 4.500 shares of Marvell common stock for each share held. The transaction has an implied enterprise value of $115 billion for Lumentum, representing a premium of approximately 23.9% based on unaffected closing prices as of October 28, 2026.
The merger aims to address the shift in AI infrastructure from copper-based connectivity to optical technologies. Marvell brings strengths in electrical interconnects, network switching, and custom XPU, while Lumentum contributes expertise in high-performance lasers, optical transceivers, and optical circuit switching (OCS). The companies stated that the combined entity will offer a full-stack connectivity portfolio spanning CMOS, silicon photonics, compound semiconductors, and advanced packaging, expanding the total addressable market to $550 billion.
Financially, Marvell expects the transaction to be accretive to non-GAAP earnings per share in the first year post-close and to provide line of sight to more than $1 billion in annual run-rate cost synergies. Upon closing, current Marvell shareholders will own approximately 67% of the combined company, while Lumentum shareholders will own about 33%. Matt Murphy, Chairman and CEO of Marvell, will lead the combined company, and three members of Lumentum’s Board, including CEO Michael Hurlston, will join Marvell’s Board.
The transaction remains subject to regulatory approvals and shareholder votes, with an expected close in the first half of calendar 2027. This filing confirms details previously reported only as 'advanced talks' by media outlets, which had not disclosed specific terms or pricing.