Marvell to acquire Lumentum for $115B in one of tech's biggest deals

Custom chip designer Marvell has signed an agreement to acquire optical chip and networking equipment maker Lumentum. The transaction is structured as an all-stock deal with an enterprise value of $115 billion, including debt, and an equity value of approximately $80 billion.

• Marvell will provide 4.5 shares of its common stock for each share of Lumentum.
• The total enterprise value of the acquisition is estimated at $115 billion.
• Both companies share a major strategic investor in GPU giant Nvidia.
• The transaction is expected to close in the first half of 2028.

Historical Context and Scale of the Acquisition

This planned purchase ranks among the largest acquisitions in the history of the technology sector. By comparison, Microsoft acquired Activision Blizzard for $68.7 billion in 2022, while Dell bought EMC for $67 billion in 2016, putting Marvell's latest strategic move on a massive financial scale.

An interesting aspect of the deal is that both target and acquirer share a common major shareholder: Nvidia. Earlier in March, Nvidia invested $2 billion into Lumentum to support laser component R&D and fab expansion, and simultaneously invested another $2 billion into Marvell to strengthen its optical networking portfolio.

Strategic Goals for AI Connectivity

Following the integration with Lumentum, Marvell expects to establish itself as a clear leader in AI connectivity. The combined product portfolio will span advanced chips all the way to comprehensive data center infrastructure solutions.

The completion of the deal remains subject to customary closing conditions, regulatory approvals, and the green light from both companies' shareholders, with the final closure anticipated during the first half of calendar year 2028.

Industry Implications and Future Outlook

This massive consolidation highlights the critical importance of optical networking and high-speed data transmission in the era of artificial intelligence. With Nvidia backing key players across the supply chain, the merger is set to reshape the competitive landscape for data center hardware and AI infrastructure.