The Marvell Technology announced this Monday (2) the acquisition of Lumentum, a manufacturer of optical technologies, in a transaction paid entirely in shares. The agreement assigns the acquired company an implied enterprise value of approximately US$ 115 billion and seeks to expand Marvell's presence in the supply of components for artificial intelligence infrastructure.
Under the announced terms, Lumentum shareholders will receive 4.5 Marvell shares for each share held. After completion, current Marvell investors are expected to control about 67% of the combined company, while Lumentum shareholders will hold the remaining 33%.
The acquisition will bring together Marvell's semiconductor, interconnection and network switching technologies with Lumentum's portfolio of lasers, optical transceivers and connection systems. These components are used to transport large volumes of data between processors, servers and other parts of data centers.
The move follows the growing need for optical connections in AI systems, in which the transmission limitations of copper cables pose a challenge to increasing processing capacity.
"AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity," said Matt Murphy, president and CEO of Marvell, in the statement announcing the transaction.
Acquisition depends on approvals and is expected to be completed in 2028
The agreement received unanimous approval from the boards of directors of both companies, but still depends on approval from shareholders and regulatory authorities. The transaction is expected to be completed in the first half of 2028.
Matt Murphy is expected to remain as president and CEO of the combined company. Three members of Lumentum's board, including its current CEO, Michael Hurlston, will join Marvell's board.
The companies also project annual synergies of more than US$ 1 billion, mainly from cost reductions. This amount represents an expectation for the period after integration, not savings already realized.
