Business · Companies · 29 mins ago
Marvell to buy data centre component maker Lumentum in $115bn deal
Marvell plans to buy Lumentum, a company that makes data centre components.
The proposed purchase involves two companies in the data centre industry.
The deal is valued at $115bn.
It is framed as a major bet on artificial intelligence.
Data centres are central to the infrastructure used for AI, while Lumentum makes components for them.
No details are given about the deal timeline or next steps.
Marvell Technology announced a $115 billion all-stock deal, including debt, to buy optical components maker Lumentum.
The companies say the combination will bring together complementary technologies and expand Marvell’s reach in AI data-centre connectivity.
Marvell will pay $1,132 per Lumentum share, a 23.9 per cent premium to its unaffected closing price on October 28.
The deal has an equity value of $102.54 billion and is subject to stockholder approval.
Marvell expects the deal to close in the first half of 2028.
- Who
- Marvell Technology is buying Lumentum Holdings.
- What
- The all-stock deal is valued at $115 billion, including debt. Its equity value is $102.54 billion.
- When
- Announced on November 2, 2026. It is expected to close in the first half of 2028.
- Where
- Not stated
- Why
- Marvell is betting that demand for optical components used to move data in AI data centres will remain strong.
This story does not have two clearly opposing sides.
Marvell closed its $3.5 billion purchase of Celestial AI.
Nvidia invested $2 billion each in Marvell and Lumentum.
Lumentum’s last unaffected closing price was recorded before deal talks were first reported.
Marvell announced its agreement to acquire Lumentum.
Marvell expects the deal to close, subject to stockholder approval.
- Deal value
- $115 billion, including debt
- Equity value
- $102.54 billion
- Offer price
- $1,132 per Lumentum share
- Premium
- 23.9 per cent to Lumentum’s unaffected October 28 closing price
- Combined addressable market
- $550 billion
7 sources
Marvell to acquire Lumentum in $115 billion AI connectivity deal
Marvell to buy Lumentum in all-stock deal, a massive bet on AI connectivity
Marvell compra Lumentum por US$ 115 bilhões e aposta no mercado de data centers para IA
Marvell to buy Lumentum in US$115 billion deal in AI data-center bet
Marvell to buy Lumentum in $115-billion deal in AI data-centre bet
Marvell to buy data centre component maker Lumentum in $115bn AI bet
Marvell and Lumentum officially plan to combine. Here’s what to know.
What people are saying
AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation.
The companies that move first and help define this transition will set the standard for decades to come.