Marvell Technology has announced an agreement to acquire Lumentum in an all-stock transaction valued at $115 billion. Upon completion, Marvell shareholders will hold approximately 67% of the combined entity, while Lumentum shareholders will retain about 33%. The deal has received unanimous approval from both boards and is expected to close in the first half of 2028, subject to regulatory and shareholder consent.
The acquisition aims to integrate Lumentum’s optical component portfolio—including high-performance lasers, modulators, and photodetectors—with Marvell’s existing expertise in DSPs, silicon photonics, and custom AI accelerators. A key asset is Lumentum’s manufacturing capacity for indium phosphide and gallium arsenide, which will transition Marvell from a purely fabless model to a hybrid structure.
Financially, the companies project the combined entity’s total addressable market will reach $550 billion by 2030. They anticipate annual run-rate cost synergies exceeding $1 billion. Based on recent performance data, the merged business is estimated to generate over $21 billion in annualized revenue. Lumentum reported $1.26 billion in revenue for its first fiscal quarter of 2027, marking a 136.5% year-over-year increase.
The agreement includes significant breakup fees: Marvell would pay $3.2 billion if the deal fails due to regulatory hurdles, and up to $5.8 billion if the board withdraws or accepts a rival offer. Lumentum faces a $2.9 billion fee in similar circumstances. Following the announcement, Marvell shares fell 12.7% to $171.41, while Lumentum shares declined 18.6% to $684.40.
