Marvell Technology has agreed to acquire optical components maker Lumentum in an all-stock transaction designed to expand its capabilities in AI infrastructure connectivity.
Marvell said the deal has an implied enterprise value of $115 billion for Lumentum. Because the transaction uses a fixed exchange ratio and includes no cash component, its final value will depend on the price of Marvell shares.
Under the agreement, Lumentum shareholders will receive 4.5 Marvell shares for each Lumentum share. The transaction is expected to close during the first half of 2028.
Marvell said the acquisition will combine its electrical technologies with Lumentum’s optical technologies to address changing AI connectivity requirements across regions and systems. Optical connections are increasingly being used to link the chips that power the training and operation of large language models.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity,” Marvell Chairman and CEO Matt Murphy said in a company release, describing the transition as a major long-term opportunity.
The acquisition represents Marvell’s latest move to capitalize on AI-related growth. Earlier this year, the company completed a multibillion-dollar acquisition of Celestial AI, a startup focused on optical interconnectivity technology.
Marvell’s market value has more than tripled over the past three years amid strong investor interest in AI, while Lumentum shares have more than doubled in 2026. Marvell shares fell 3% and Lumentum shares declined about 4% in premarket trading after the announcement.
Sources: CNBC Markets.