Marvell offers $115 billion in stock to acquire Lumentum

Marvell Technology will purchase Lumentum in an all-stock deal with an implied enterprise value of $115 billion. The agreement structures the exchange at a fixed ratio, meaning Lumentum shareholders will receive 4.5 Marvell shares for every Lumentum share they hold.

Matt Murphy, Marvell Chairman and CEO, stated the move responds to a fundamental architectural shift in AI infrastructure toward optical connectivity. He described the moment as a generational opportunity where early movers set standards for decades.

The acquisition aims to merge electrical and optical technologies to handle rising connectivity demands. Data centers increasingly rely on optical links to connect chips for training large language models. Marvell previously acquired Celestial AI earlier this year to expand its optical interconnectivity capabilities.

Both stocks have surged on recent AI enthusiasm. Marvell's market value has tripled over the past three years, while Lumentum shares have more than doubled in 2026. The deal proceeds despite market concerns regarding the long-term sustainability of infrastructure spending.

Market reaction on Monday showed immediate volatility. Marvell shares dropped 3% and Lumentum stock fell approximately 4% in pre-market trading.

The transaction is scheduled to close during the first half of 2028.