Marvell strikes $115 billion all-stock deal for Lumentum

Marvell has agreed to buy Lumentum in an all-stock transaction that values the maker of optical data-center components at an implied enterprise value of $115 billion. Lumentum shareholders would receive 4.5 Marvell shares for each share they own, meaning the eventual value of the deal will move with Marvell’s stock; they would hold about one-third of the combined company. The rationale is less about adding another chip business than controlling a crucial link in AI data centers: the lasers and optical hardware that move huge volumes of data between processors when copper connections no longer have the needed reach or efficiency. The companies expect to close in the first half of 2028, subject to shareholder and regulatory approvals, making this a large bet that demand for AI computing—and the networks around it—will keep growing.