Marvell Technology Inc. has agreed to acquire Lumentum in an all-stock transaction valued at approximately $115 billion, combining their semiconductor, optical connectivity and manufacturing capabilities for AI data center infrastructure. Under the agreement, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each Lumentum share. The offer represents an implied value of approximately $1,132 per Lumentum share, a 23.9% premium over its closing price on October 28, 2026, before speculation about the deal began. Following completion, Marvell shareholders will own approximately 67% of the combined company, with Lumentum shareholders holding the remaining 33% on a fully diluted basis. The deal brings together Marvell’s electrical and optical interconnect, network switching, custom XPU and advanced semiconductor technologies with Lumentum’s high-performance lasers, optical transceivers, optical circuit switching (OCS) and compound semiconductor manufacturing capabilities. The combined portfolio is expected to span CMOS, silicon photonics, compound semiconductors and advanced packaging. The companies plan to integrate electrical and optical technologies more closely to address bandwidth and power requirements across AI infrastructure, from connections between data centers to links within advanced semiconductor packages. The move comes as AI infrastructure increasingly shifts toward optical connectivity. Growing bandwidth requirements and the physical limitations of copper-based interconnects are driving demand for optical solutions, particularly in scale-up and scale-in architectures. “AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Matt Murphy, chairman and CEO of Marvell. “The companies that move first and help define this transition will set the standard for decades to come. By bringing together two leaders with highly complementary technologies, exceptional talent and specialized manufacturing capabilities, we intend to help shape the next era of AI connectivity and create exceptional stockholder value.” Lumentum CEO Michael Hurlston said the combination would expand the companies’ ability to develop and manufacture connectivity technologies for emerging AI systems. “Joining Marvell creates a company uniquely positioned to capitalize on a market opportunity of $550 billion and generate significant, sustainable stockholder value,” said Hurlston. “Surging AI data traffic requires rapid hardware innovation, and this combination enhances our ability to deliver next-generation solutions at scale. Together with Marvell, we will meet our customers’ complete interconnect needs, spanning scale-across and scale-out today to scale-up and scale-in domains tomorrow. By offering extreme co-design around our customers’ demanding requirements, we will help them achieve faster time to market, accelerated innovation cycles and category-defining performance.” Lumentum contributes indium phosphide (InP) process technologies and high-speed, high-power laser manufacturing. Integrating these capabilities with Marvell’s semiconductor design and advanced packaging operations is expected to support heterogeneous integration and development of next-generation optical components. The companies estimate that the combination will expand their total addressable market to $550 billion. They also expect more than $1 billion in annual run-rate cost synergies and anticipate the deal will be accretive to Marvell’s non-GAAP earnings per share in the first year after closing. Matt Murphy will remain chairman and CEO of the combined company. Three members of Lumentum’s board, including Hurlston, will join Marvell’s seven-member board. The transaction has been unanimously approved by both companies’ boards of directors. Completion is expected in the first half of 2028, subject to shareholder and regulatory approvals and other custom