Marvell to Acquire Lumentum in Massive $115 Billion AI Connectivity Deal
AI-generated image · Bay Street Wire
The all-stock acquisition marks one of the largest tech deals in history, with Nvidia holding significant investments in both companies.
Marvell, a custom chip designer, has entered into an agreement to acquire optical chip and networking equipment manufacturer Lumentum. As TechCrunch first reported, the all-stock transaction is valued at $115 billion on an enterprise basis (including debt), with an equity value of roughly $80 billion.
Under the terms of the deal, Marvell will issue 4.5 shares of common stock for every share of Lumentum. TechCrunch notes that the scale of the acquisition surpasses other major tech mergers, such as Microsoft's $68.7 billion purchase of Activision Blizzard in 2022 and Dell's $67 billion acquisition of EMC in 2016.
Marvell stated that the acquisition is intended to establish the company as a leader in AI connectivity, offering a product range that spans from chips to data centers. However, TechCrunch highlights a common link between the two firms: Nvidia. In March, Nvidia invested $2 billion to support Lumentum's fab expansion and R&D as part of a multi-year agreement for advanced laser components. In the same month, Marvell announced that Nvidia had also invested $2 billion to enhance Marvell's chips portfolio and optical networking.
The deal is projected to close in the first half of 2028, pending approval from regulators and shareholders from both companies.