In one of the largest deals in tech history, Marvell buys Lumentum for $115B

Marvell has agreed to acquire Lumentum in an all-stock transaction, the custom chip designer announced. The deal carries an enterprise value of $115 billion, including debt, and an equity value of about $80 billion. Under the terms, Marvell will issue 4.5 shares of its common stock for each Lumentum share. The agreement ranks among the largest acquisitions ever completed in the technology industry.

The price puts the transaction well above previous mega-deals in the sector. Microsoft's purchase of Activision Blizzard was valued at $68.7 billion in 2022, and Dell's acquisition of EMC was valued at $67 billion in 2016. Marvell's move on Lumentum, an optical chip and networking equipment maker, exceeds both. The two companies expect to close the transaction in the first half of calendar year 2028, provided shareholders of both firms and regulators approve.

Nvidia holds a stake in both companies and stands out as their one major common shareholder. In March, Nvidia invested $2 billion in Lumentum to support its research and development work and fab expansion, part of a multi-year agreement to buy Lumentum's advanced laser components. Later that same month, Marvell announced that Nvidia had invested $2 billion in Marvell to strengthen its optical networking and chips portfolio.

Marvell said the combination with Lumentum will position it as a leader in AI connectivity, with products spanning chips through data centers. The company's custom chip business would sit alongside Lumentum's optical components and networking equipment under one roof. The all-stock structure means Lumentum shareholders would hold Marvell shares once the deal is complete.

The transaction is the largest in Marvell's history and one of the biggest in the technology sector overall. It also deepens the ties between Marvell, Lumentum and Nvidia, which has now put money into both companies. Whether the deal proceeds rests on approvals from shareholders and regulators, which the companies have not yet secured.

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