Marvell Agrees to Buy Lumentum in $115 Billion All-Stock AI Connectivity Deal

Marvell Technology said Monday it will acquire optical components maker Lumentum Holdings in an all-stock deal with an implied enterprise value of $115 billion, one of the largest technology deals ever. Lumentum makes lasers, circuit switches and other products used in data centers. Under the agreement, Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share. Because no cash is involved, the deal's value will move with Marvell's share price. The deal is expected to close in the first half of 2028.

Marvell Chairman and CEO Matt Murphy said AI infrastructure is shifting toward optical connectivity, an opportunity that comes along "once in a generation". Marvell said the combination would make it a category leader in AI connectivity by joining electrical and optical technologies. Marvell shares fell more than 1% before the market opened, and Lumentum fell almost 3%. Nvidia said earlier this year that it was buying a $2 billion stake in Lumentum, according to Bloomberg. Marvell also closed a multibillion-dollar deal for Celestial AI this year.

Newsmax, on the right, frames the deal as a competitive move: its excerpt describes Marvell as a custom chipmaker stepping up its challenge to larger rival Broadcom, and it mentions that the $115 billion figure includes debt. CBS News, on the left, leads with the size of the deal and Murphy's statement. It adds Nvidia's reported stake and says markets appear less certain, citing the share declines and last week's pullback in AI stocks. Both sides give the $115 billion all-stock figure and treat the deal as an AI data-center bet. They differ in focus: Newsmax on the Broadcom rivalry, CBS on market reaction. The alternative sources add a separate angle. CNBC gives the exchange ratio and closing timeline, while MarketWatch compares the deal to the dot-com bubble.