WASHINGTON (dpa-AFX) - Marvell Technology, Inc. (MRVL), a fabless semiconductor company, said Monday that it has agreed to acquire optical and photonic products maker Lumentum Holdings Inc. (LITE) in an all-stock deal with an implied enterprise value of $115 billion.
Under the terms of the agreement, Lumentum shareholders will receive 4.5 shares of Marvell stock for each share they own.
The deal represents a premium of approximately 23.9% based on the companies' unaffected closing share prices on October 28, 2026, valuing each Lumentum share at approximately $1,132.
Marvell said the combination will bring together its electrical and optical interconnect, switching and custom silicon technologies with Lumentum's high-performance lasers and optical transceivers to create a broad AI connectivity portfolio serving data centers to advanced semiconductor packages.
Following the transaction, Marvell shareholders will own approximately 67% of the combined company, while Lumentum shareholders will hold the remaining 33%. Three Lumentum directors, including CEO Michael Hurlston, will join Marvell's board.
The transaction is expected to close in the first half of calendar 2028.
The combined company is expected to have a total addressable market of $550 billion and generate more than $1 billion in annual cost synergies. The deal is also expected to boost Marvell's non-GAAP earnings per share in the first year after closing.
Additionally, Marvell said preliminary third-quarter revenue is expected to be in line with its previous guidance, with the expected range narrowed to plus or minus 2%, compared with its earlier forecast of $3.150 billion, plus or minus 5%.
'AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,' said Matt Murphy, Chairman and CEO of Marvell.
In pre-market trading, Marvell shares rose nearly 1% after closing at $196.40 on Friday, while Lumentum shares declined nearly 1% after ending the previous session at $840.70.
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