Marvell Technology and Lumentum said on Monday they have entered a definitive agreement for Marvell to acquire Lumentum in an all-stock transaction, signed on November 1, 2026. Lumentum stockholders will receive a fixed exchange ratio of 4.500 shares of Marvell common stock for each Lumentum share, which the companies put at an implied enterprise value of 115 billion dollars for Lumentum, about 1,132 dollars per Lumentum share and a premium of about 23.9 percent to the unaffected closing prices of October 28, 2026, the last trading day before market speculation about a transaction began. Because the ratio is fixed, the dollar value Lumentum holders receive will move with Marvell’s share price until closing.
On a fully diluted basis, current Marvell stockholders will own about 67 percent of the combined company and Lumentum stockholders about 33 percent. Both boards approved the agreement unanimously. Matt Murphy will continue as chairman and chief executive of the combined company, and three Lumentum directors, including Lumentum chief executive Michael Hurlston, will join Marvell’s board, which currently has seven directors. The companies expect the transaction to close in the first half of calendar 2028, subject to approval by both companies’ stockholders, regulatory approvals and other customary conditions. Under the merger agreement filed with the announcement, Marvell would owe a termination fee of 5.8 billion dollars in specified circumstances, including a 3.2 billion dollar regulatory termination fee in defined approval failure cases, and Lumentum a reciprocal fee of 2.9 billion dollars.
The strategic case the companies make is the shift from copper to optical connectivity as AI clusters grow. Marvell brings electrical and optical interconnect, network switching, custom processors and advanced packaging; Lumentum brings high-performance lasers, optical transceivers, optical circuit switching and compound semiconductor manufacturing, including indium phosphide. The companies say the combination expands their total addressable market to 550 billion dollars, gives line of sight to more than 1 billion dollars of annual run-rate cost synergies, and should be accretive to Marvell’s non-GAAP earnings per share in the first year after closing. Those are company statements, not measured results.
Alongside the deal, Marvell reported preliminary revenue for its fiscal third quarter of 2027 consistent with its earlier guidance, holding the midpoint and narrowing the expected range to plus or minus 2 percent from plus or minus 5 percent. Lumentum reported its fiscal first quarter 2027 results separately on Monday. Reuters described the transaction as one of the biggest deals of 2026 and a step in Marvell’s challenge to larger rival Broadcom during the AI spending boom.