Marvell Reported to Be in Advanced Acquisition Talks with Lumentum
Bloomberg reports Marvell is in advanced talks to acquire Lumentum, potentially announced next week. Unconfirmed by both parties; Lumentum shares rose post-market while Marvell fell over 8%.
According to Bloomberg, U.S. networking chipmaker Marvell Technology is in advanced acquisition talks with Lumentum Holdings, a supplier of optical components for data centers. Reuters, citing sources, reported that the deal could be announced as early as next week. Neither Marvell nor Lumentum immediately responded to requests for comment, and the price and transaction structure remain undisclosed.
Market reactions were mixed: Lumentum shares closed up 5.52% in regular trading and rose approximately 9% in after-hours trading, while Marvell fell more than 8% after hours. Analysts suggest the potential merger aims to combine Marvell's optical signal processing chips with Lumentum's lasers and photodetectors, addressing the shift from copper to optical interconnects within AI computing clusters. Bernstein analysts noted that given Lumentum's estimated $83 billion market cap, the deal size makes an all-cash payment nearly impossible and highlights significant integration challenges.