Marvell Announces $115 Billion Acquisition of Lumentum for AI Infrastructure

Marvell Technology has agreed to purchase optical components maker Lumentum in a $115 billion all-stock transaction, including debt. Announced on Monday, the deal stands as one of the largest corporate agreements in 2026 and reflects strong industry confidence in ongoing artificial intelligence spending.

Under the terms of the agreement, Lumentum shareholders will receive 4.5 shares of Marvell for each share they currently hold. The transaction values Lumentum at an equity value of $102.54 billion, calculated at a 23.9% premium over its closing price before initial acquisition reports emerged.

Company leadership noted that the combination will integrate electrical and semiconductor technologies with optical components to address rapidly growing connectivity requirements. Both firms previously received investments of $2 billion each from AI chip leader Nvidia earlier in the year.

The acquisition is anticipated to close during the first half of 2028. Following the announcement, shares for both companies experienced declines during Monday's trading session amid broader market movements.