Marvell acquires Lumentum for $115B in landmark AI infrastructure deal

US-based Marvell Technology has reached an agreement to acquire Lumentum Holdings for $115 billion, including debt. This historic union represents one of the largest technology sector acquisitions of all time, significantly surpassing previous market milestones.

The equity value is estimated at approximately $80 billion, and the transaction will be funded entirely through stock. Lumentum shareholders will receive 4.5 shares of Marvell common stock for each share they currently own.

• The deal values Lumentum at $115 billion including debt and about $80 billion in equity.
• The acquisition will be paid entirely in stock at a 4.5-to-1 ratio.
• Transaction closing is anticipated in the first half of 2028.
• Nvidia serves as a major shared investor in both companies.

Combining chip design with advanced optical technology

Marvell designs specialized microchips, including solutions for data centers, while Lumentum manufactures optical components, lasers, and networking equipment. Following the merger, Marvell aims to secure a leading position in the artificial intelligence infrastructure market.

Optical technologies are exceptionally crucial for transmitting massive volumes of data between high-performance computing systems with minimal latency. The combined portfolio will range from individual specialized chips to comprehensive data center infrastructure solutions.

Setting new records in tech industry history

The scale of this planned merger stands out even when compared to the largest historical tech acquisitions. For context, Microsoft acquired Activision Blizzard for $68.7 billion in 2022, and Dell purchased EMC for $67 billion in 2016.

The announced valuation of the Marvell and Lumentum transaction substantially exceeds both of those historic figures. This reflects the massive capital allocation and strategic importance of hardware infrastructure amid the global artificial intelligence boom.

Nvidia backing and path to completion

Both companies already share a common major investor in Nvidia. In March 2026, the graphics processor giant invested $2 billion in Lumentum and another $2 billion in Marvell to support their research, development, and optical networking capabilities.

The transaction is expected to close in the first half of 2028, pending approval from shareholders of both companies and the necessary regulatory and antitrust authorities.