A proposed merger of Marvell and Lumentum would bring together chip interconnect and optical-networking products used in data centers, with the agreement implying a $115 billion enterprise value for Lumentum.
Under the all-stock terms, each Lumentum share would convert into 4.5 Marvell shares. Measured against the unaffected price on Oct. 28, the exchange values each Lumentum share at about $1,132, or 23.9% above that benchmark.
Lumentum shareholders are projected to own 33% of the combined company after closing, with Marvell shareholders holding the remaining 67%. The calculation uses a fully diluted share count.
Marvell’s portfolio includes custom XPUs, switching and electrical and optical interconnect technologies. Lumentum contributes optical transceivers, lasers and optical circuit-switching systems used in data-center networks.
Directors at both companies approved the agreement unanimously. Closing is targeted for the first half of 2028, pending shareholder and regulatory approvals. Marvell shares ended Friday, Oct. 30, at $196.40 after shedding $21.94, or 10.05%, in the session, before the deal announcement Monday.
Bloomberg reported advanced talks before the agreement was announced. EconoTimes previously covered Bloomberg’s report in its Oct. 28 story on advanced talks.
