Marvell Technology plans to combine with Lumentum Holdings in an all-stock deal aimed at the optical-networking market. Marvell shareholders would own about two-thirds of the combined business, and the companies expect the deal to close in the first half of 2028.
Marvell Technology officially plans to combine with Lumentum Holdings in a massive deal meant to target the optical-networking market. The transaction will be financed entirely through stock.
Marvell offers a 24% premium
Marvell is offering about $1,132 per Lumentum share. That is 24% above where Lumentum shares traded at the close on Oct. 28, before rumors began swirling about a possible combination.
Marvell CEO Matt Murphy framed the deal around optical technology. In a release, he said "AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity".
Optical technologies have become key to moving artificial-intelligence data at high speeds. The companies said that, combined, they will be able to address market opportunities more quickly.
Closing depends on shareholders and regulators
Once the deal closes, Marvell shareholders will own about two-thirds of the combined business. The companies expect the transaction to be completed in the first half of 2028, subject to approval by shareholders and regulators.
Marvell shares were up about 1% in premarket trading on Monday, though they fell last week after Bloomberg News reported on a potential combination. Lumentum's stock was up more than 2%.
Marvell had a $172 billion market capitalization as of Friday's close. Lumentum was worth $76 billion after its stock essentially doubled this year.
Source: MarketWatch
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