Follow-Up: Marvell Seals All-Stock Acquisition of Lumentum at an Implied $115 Billion Enterprise Value
SANTA CLARA, Calif., November 3 — Marvell Technology, Inc. (NASDAQ: MRVL) and Lumentum Holdings Inc. (NASDAQ: LITE) announced on November 2 that they have entered into a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction, at an implied enterprise value of about $115 billion for Lumentum. GSM reported on October 29 that the two companies were in deal talks; days later, the talks have become a signed agreement.
Under the agreement, Lumentum stockholders will receive a fixed exchange ratio of 4.500 shares of Marvell common stock for each share of Lumentum common stock they own, implying about $1,132 per share — a premium of about 23.9% based on each company's unaffected closing share price on October 28, 2026, the last trading day before market speculation regarding a potential transaction began. At that price the implied equity value is about $102.5 billion (as calculated by Reuters), and the enterprise value is about $115 billion, including debt assumed. After closing, current Marvell stockholders will own approximately 67% of the combined company on a fully diluted basis, and Lumentum stockholders approximately 33%. The boards of directors of both companies have unanimously approved the agreement.
After closing, Matt Murphy will continue as chairman and CEO of the combined company. Three members of Lumentum's board of directors, including Lumentum CEO Michael Hurlston, will join Marvell's board, which currently consists of seven directors. The transaction is expected to close in the first half of calendar year 2028, subject to approval by Marvell and Lumentum stockholders, receipt of regulatory approvals and other customary closing conditions; until then, the two companies will continue to operate separately.
The companies say rapidly growing bandwidth requirements in super intelligence (SI) infrastructure and the physical limitations of copper-based connectivity are accelerating the industry's transition toward optical technologies. Marvell brings strengths in electrical and optical interconnect, network switching, custom XPU and advanced semiconductor technologies, while Lumentum adds high-performance lasers, optical transceivers, optical circuit switching (OCS) and specialized compound semiconductor manufacturing. The combination is expected to expand the combined company's total addressable market to $550 billion, provide line of sight to more than $1 billion in annual run-rate cost synergies, and be accretive to Marvell's non-GAAP earnings per share in year one post-close.
"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation," said Matt Murphy, Marvell's chairman and CEO. "The companies that move first and help define this transition will set the standard for decades to come." Michael Hurlston, Lumentum's president and CEO, said joining Marvell "creates a company uniquely positioned to capitalize on a market opportunity of $550 billion."
Shares of both companies fell sharply on November 2, the day of the announcement. According to closing market data, Marvell closed down 12.7% at $171.41 and Lumentum closed down 18.6% at $684.40. Because the exchange ratio is fixed, the value Lumentum stockholders ultimately receive will move with Marvell's share price: at the November 2 close, 4.500 Marvell shares were worth about $771, well below the roughly $1,132 per share implied by the October 28 reference prices.
Also on November 2, Lumentum reported fiscal first-quarter 2027 results, with revenue up 136.5% year over year to $1.26 billion, and Marvell reported preliminary fiscal third-quarter 2027 revenue consistent with its previously provided guidance, maintaining the midpoint while narrowing the expected range to plus or minus 2%, from plus or minus 5%. The two companies held a joint conference call the same day to discuss the transaction.
(Source: Marvell and Lumentum)
Source: Marvell and Lumentum
Published by GSM · USA (original Chinese edition)
Photo: 图：Marvell 与 Lumentum 两家公司的官方标志（公共领域，经 Wikimedia Commons）。两家公司总部分别位于 Santa Clara 与 San Jose。
- 2026-10-29Reports Say Chipmaker Marvell and Optical-Device Maker Lumentum Are in Deal Talks; Both Stocks Move Sharply, Neither Company Confirms
- 2026-11-03Follow-Up: Marvell Seals All-Stock Acquisition of Lumentum at an Implied $115 Billion Enterprise ValueThis story
