Marvell has signed a deal to acquire optical chip and networking equipment maker Lumentum in an all-stock transaction valued at $115 billion, including debt. The equity value of the deal is about $80 billion, making it one of the largest acquisitions in tech history.
The agreement, announced by Marvell, will see the custom chip designer provide 4.5 shares of its common stock for each share of Lumentum. Both companies share a major strategic investor: Nvidia. The deal is expected to close in the first half of calendar year 2028, subject to shareholder and regulatory approvals.
Marvell-Lumentum deal terms and scale
Under the terms of the all-stock deal, Marvell will exchange 4.5 of its shares for each Lumentum share. The enterprise value of $115 billion includes debt, while the equity value is approximately $80 billion. For context, this dwarfs Microsoft's $68.7 billion purchase of Activision Blizzard in 2022 and Dell's $67 billion acquisition of EMC in 2016.
Marvell says the acquisition will position it as a leader in AI connectivity, with products spanning from chips to data centers. The transaction is expected to close in the first half of calendar year 2028, pending approval from both companies' shareholders and regulators.
- Enterprise value: $115 billion (including debt)
- Equity value: approximately $80 billion
- Exchange ratio: 4.5 Marvell shares per Lumentum share
- Expected closing: first half of calendar year 2028
