Marvell Technology, Inc. has agreed to acquire Lumentum in an all-stock deal aimed at expanding connectivity for next-generation AI infrastructure. The companies say growing bandwidth requirements and the physical limits of copper-based connectivity are accelerating the shift to optical technologies. As AI infrastructure scales to more complex architectures, the industry is moving from discrete components toward integrated optical solutions that require closer co-design of electrical and optical technologies.
The combination brings together Marvell’s electrical and optical interconnect, network switching, custom XPU and XPU attach, and semiconductor technologies with Lumentum’s high-performance lasers, optical transceivers, optical circuit switching (OCS) and compound semiconductor manufacturing. The combined portfolio is expected to span CMOS, silicon photonics, compound semiconductors, advanced packaging and manufacturing, with connectivity solutions covering distances from distributed data centers to connections within advanced semiconductor packages.
The companies expect the combination to support end-to-end co-design and high-volume production of pre-validated optical solutions. They also expect it 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 enhance long-term revenue growth and non-GAAP margin profiles. The transaction is expected to be accretive to Marvell’s non-GAAP earnings per share in year one post-close.
Lumentum stockholders will receive 4.500 shares of Marvell common stock for each Lumentum common share held at closing. After closing, Marvell stockholders are expected to own approximately 67% of the combined company and Lumentum stockholders approximately 33%, on a fully diluted basis. Marvell Chairman and CEO Matt Murphy will continue in that role, and three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s board.
Murphy said the companies aim to help shape the next era of AI connectivity by combining complementary technologies, talent and specialized manufacturing capabilities.
The transaction, unanimously approved by both companies’ boards, is expected to close in the first half of calendar year 2028, subject to stockholder and regulatory approvals and other customary closing conditions.
