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

Marvell Technology announced a definitive all-stock agreement to acquire Lumentum on November 2, 2026, in a deal valued at approximately $115 billion in enterprise value.

Under the terms, Lumentum shareholders would receive 4.5 Marvell shares for each share they hold. Marvell shareholders would own about 67 percent of the combined company. The transaction is subject to regulatory and shareholder approvals and is not yet closed.

The deal targets the optical interconnects and integrated networking technology that link AI chips and systems. As AI clusters grow in scale, the demand for high-speed optical connections between processors has increased sharply.

Lumentum makes optical and photonic products used in data centers, telecommunications networks, and industrial applications. Marvell makes semiconductor and networking chips used in data centers and cloud infrastructure.

The proposed acquisition would create a company with significant reach across both the electrical and optical layers of AI infrastructure, a combination that analysts say could be valuable as hyperscale data centers continue to expand.

The deal faces material valuation and execution risks. Marvell shares would need to hold their value for the all-stock transaction to deliver the announced price to Lumentum shareholders. Regulatory review could also affect the timeline or terms.

Completion is expected in the first half of 2028, pending approvals. The announcement follows a broader trend of consolidation in the semiconductor and networking industry as companies position themselves to supply the infrastructure behind AI model training and deployment.