Marvell agrees to buy optical-component maker Lumentum in an all-stock deal that values Lumentum at US$115 billion

Concept illustration: on the left, a low red storefront has a white sign lettered LUMENTUM beside a fan of coloured lines, and its window shows a pale box-shaped device sending a red beam from a round port on its right toward three small modules lined up to its right; on the right, a taller black storefront has a white sign lettered MARVELL beside a blue M-shaped mark, with three dark square chips with gold pins in its window. On the black building's roof stands a billboard on two posts showing a low red building section joined to a taller black one, and a person wearing a lanyard stands on the roof to its right, holding a paintbrush against the billboard's right edge. Printed on the image: US$115B Lumentum enterprise value, Marvell as acquirer.

Marvell and Lumentum jointly announced on November 2 that Marvell will acquire Lumentum in an all-stock transaction. Marvell says in the release that AI data-center links are moving from copper to optics, so electrical and optical chips have to be designed more closely together.

The terms put Lumentum's enterprise value at US$115 billion. Each Lumentum share converts into 4.5 Marvell shares, which the companies value at about US$1,132. That is about 23.9% above Lumentum's closing price on October 28, before word of the deal reached the market. After closing, Marvell's current shareholders will own about 67% of the combined company and Lumentum's about 33% (Marvell and Lumentum joint press release, 2026-11-02).

The joint release says bandwidth demand in AI data centers is rising fast, copper links are hitting physical limits, and the industry is shifting to optics, so electrical and optical chips have to be designed more closely together. Marvell makes electrical and optical interconnect chips, network switch chips and custom AI chips for cloud companies. Lumentum makes high-performance lasers, optical transceiver modules and optical circuit switches, which route data paths entirely in light, and runs a compound-semiconductor fab. The two companies say the merger will save more than US$1 billion a year in costs and widen the combined company's addressable market to US$550 billion. Both figures are the companies' own projections. The deal is expected to close in the first half of 2028 and needs approval from both sets of shareholders and from regulators.

Not proven yet: the cost savings and market size are the companies' own estimates How we checked →

Next to watch: the merger registration filing the two companies must submit to the SEC, which will list the deal's risks and which countries' regulators must clear it. Closing is expected in the first half of 2028.

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This item ran in the brief of Nov 3, 2026, alongside 4 other items. How we checked it, the quote checks and what was still missing that day are on that issue's How we checked page.

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SecondSource (2026). "Marvell agrees to buy optical-component maker Lumentum in an all-stock deal that values Lumentum at US$115 billion." https://secondsource.io/en/news/2026-11-03-2/. Accessed access date.