Marvell’s planned all-stock purchase of Lumentum carries a $115 billion implied enterprise value and would give Marvell holders a 67% stake in a combined business aimed at AI connectivity after closing.
Marvell and Lumentum disclosed the transaction on Nov. 2, while Marvell’s Form 8-K dates the merger agreement to Nov. 1. Each Lumentum common share would be exchanged for 4.5 Marvell common shares under the fixed ratio, continuing the exchange structure detailed earlier by EconoTimes. After completion, current Marvell shareholders are expected to own about 67% and Lumentum shareholders 33% on a fully diluted basis.
The companies put the implied value of each Lumentum common share at about $1,132. They say this represents a 23.9% premium measured against the respective unaffected closing prices on Oct. 28, the last trading session before market speculation began.
The proposed combination brings Marvell’s custom silicon, switching and electrical and optical interconnect products together with Lumentum’s lasers, optical transceivers, optical circuit switching and compound-semiconductor manufacturing. The companies say AI infrastructure needs to move more data as copper connections approach physical constraints, increasing the importance of optical links.
Marvell and Lumentum project a $550 billion addressable market for the combined company and see a path to more than $1 billion in annual run-rate cost synergies. They also forecast higher non-GAAP earnings per Marvell share in the first year after closing. These figures are company projections.
Marvell Chairman and CEO Matt Murphy called the deal a rare opportunity, saying, “We believe an opportunity like this comes along once in a generation.” Lumentum President and CEO Michael Hurlston said, “Surging AI data traffic requires rapid hardware innovation.”
Murphy is expected to lead the combined company as chairman and CEO. Three Lumentum directors, including Hurlston, are expected to join Marvell’s board, and both boards approved the agreement unanimously. Closing requires shareholder votes, regulatory approvals and other customary conditions; the companies expect it in the first half of 2028.
