Marvell to Acquire Lumentum in $115 Billion AI Connectivity Deal

Marvell Technology has agreed to buy Lumentum Holdings in a transaction valued at $115 billion, bringing together a maker of data infrastructure semiconductors and a supplier of optical components used in data centers. The companies say the combination will position them to meet growing demand for connections in AI infrastructure.

Lumentum shareholders will be issued 4.5 Marvell equity shares for every share they own. The deal’s enterprise value, which includes debt, is $115 billion; its equity value is about $80 billion. The companies expect the transaction to close in the first half of 2028, pending approval from shareholders and regulators.

Marvell CEO Matt Murphy has described the shift toward optical connections for AI systems as a rare opportunity. Lumentum CEO Michael Hurlston said the companies expect to achieve more together than they could separately, and pointed to the prospect of bringing more products to Nvidia sooner.

Nvidia has invested $2 billion in each company. Its investment in Lumentum supports research and development and factory expansion, while its investment in Marvell is intended to strengthen the company’s optical networking and chip portfolio.

Marvell shares fell more than 1% before the market opened after the deal was announced, while Lumentum shares dropped nearly 3%.