The networking chipmaker has reached an agreement to merge with Lumentum in a deal that will grant Lumentum stockholders 4.5 shares of Marvell for every share they hold. The all-stock transaction, which implies a price of roughly $1,132 per share, represents a 23.9% premium over Lumentum’s Oct 28 closing price. Lumentum shareholders will own about 33% of the combined company, while Marvell shareholders will hold the remaining 67%.
Combining Marvell’s custom AI chips and networking switches with Lumentum’s laser manufacturing and optical transceivers is intended to create a vertically integrated leader in AI connectivity. Marvell says the merger could expand its target addressable market to $550B and is expected to yield more than $1B in annual run-rate cost synergies. The deal, which carries an implied enterprise value of $115B, is slated to close in the first half of 2028, pending regulatory and shareholder approval.