Marvell to buy Lumentum in all-stock deal, a massive bet on AI connectivity
The AI infrastructure deal is expected to close during the first half of 2028.
TL;DR
- Marvell Technology is acquiring Lumentum, an optical components maker.
- The deal is an all-stock transaction with an implied enterprise value of $115 billion for Lumentum.
- The acquisition is driven by the increasing connectivity demands from AI infrastructure development.
- Marvell aims to combine electrical and optical technologies to meet AI connectivity needs.
- Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share.
- The transaction is expected to close in the first half of 2028.
- This acquisition represents a significant bet on AI, following Marvell's previous acquisition of Celestial AI.
- Marvell's market value has more than tripled in the last three years due to AI enthusiasm.