Marvell agrees to buy Lumentum in all-stock deal

Marvell Technology has entered into a definitive agreement to acquire Lumentum in an all-stock transaction. Lumentum shareholders will receive 4.500 shares of Marvell common stock for each Lumentum share they own. The agreement represents a premium of approximately 23.9% based on the companies’ unaffected closing share prices as of October 28, 2026, the last trading day before speculation about a potential transaction began. After closing, existing Marvell shareholders will own approximately 67% of the combined company on a fully diluted basis, while Lumentum shareholders will hold approximately 33%.

The deal comes amid a shift toward optical technologies as growing bandwidth requirements expose the physical limitations of copper-based connections. Increasingly complex AI infrastructure, particularly scale-up and scale-in architectures, is driving a move away from discrete, modular components toward integrated optical solutions. These designs require closer coordination between electrical and optical technologies to deliver greater bandwidth, performance and energy efficiency.