Marvell to Acquire Lumentum in All-Stock Transaction

Marvell Technology announced on Monday that it would buy an optical components manufacturer Lumentum to meet the growing connectivity demands of building artificial intelligence infrastructure.

“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating a once-in-a-generation opportunity,” Matt Murphy, president and CEO of Marvell, said in a statement. “The companies that move first and help define this transition will set the standard for decades to come.”

Since the tie-up is a fixed-ratio deal with no cash, the value will depend on the price of Marvell shares. The company said the transaction had an implied enterprise value of $115 billion for Lumentum, in a statement.

Through this acquisition, Marvell said it can combine electrical and optical technologies to meet the accelerating and changing demands for AI connectivity across regions and systems. Companies are increasingly relying on optical connections to assemble the chips used to run and train large language models.

Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share under the deal. The deal is expected to close in the first half of 2028.

The Marvell buyout represents one of the biggest bets on AI in 2026 and comes despite recent concerns about the long-term sustainability of infrastructure spending.

This isn’t the company’s first bet on AI growth. This year, the company closed a multibillion-dollar deal for Celestial AI, a startup focused on optical interconnectivity technology.

Marvell has seen its market value more than triple over the past three years, buoyed by relentless enthusiasm for AI. Lumentum stock more than doubled in 2026 alone.

Shares of Marvell fell 3%, while those of Lumentum fell about 4% before the bell.