Marvell Technology, Inc (Nasdaq ticker: MRVL) and Lumentum (Nasdaq ticker: LITE) announced today that the two parties have reached a final agreement. Marvell will acquire Lumentum through a all-stock transaction.

According to the terms of the agreement, for each share of Lumentum common stock held by a Lumentum shareholder, the shareholder will receive 4.500 shares of Marvell common stock.

Calculated according to the terms of the transaction, the implied enterprise value of Lumentum is $115 billion, which is equivalent to approximately $1132 per share of Lumentum common stock; this price represents a premium of about 23.9% over the respective unimpacted closing prices on October 28, 2026. October 28 was the last trading day before potential transaction speculation began to emerge in the market.

After the transaction is completed, Marvell's existing shareholders will hold approximately 67% of the shares in the merged company on a fully diluted basis, while Lumentum's shareholders will hold about 33%.

AI The infrastructure industry is at a turning point. The rapid growth in bandwidth demand, coupled with the physical limitations of copper cable connections, is accelerating the transition to optical technology. As AI infrastructure expands into increasingly complex architectures, especially scale-up and scale-in, the industry is moving from discrete, modular components to highly integrated optical solutions. These solutions require closer collaborative design between electrical and optical technologies to provide higher bandwidth, stronger performance, and greater energy efficiency.

This merger will combine the best technologies that meet this requirement: Marvell's strengths in electrical and optical interconnections, network switching, custom XPU and XPU connections, as well as advanced semiconductor technology, with Lumentum's expertise in high-performance lasers, optical transceivers, optical circuit switching ( OCS ), and the manufacturing of special compound semiconductors. Upon completion of the transaction, the merged company is expected to offer a highly complementary product portfolio covering leading CMOS, silicon photonics, compound semiconductors, advanced packaging, and manufacturing capabilities.

This merger is aimed at promoting a deeper level of integration and collaborative design of electrical and optical signal chains, enabling Marvell to provide highly optimized connection solutions in various distance scenarios, from distributed data centers to internal connections within advanced semiconductor packages.

For the full press release, please see here.

Marvell