Marvell to acquire Lumentum in $115B optical connectivity mega deal

Marvell (MRVL) agreed to acquire Lumentum (LITE) in an all-stock deal valued at $1,132 per LITE share, offering 4.5 MRVL shares per LITE share. MRVL shares fell 5% on the news. The deal, expected to close in 2028, aims to expand MRVL's optical connectivity business, with a combined addressable market of $550B and $1B in annual synergies.

Northland Capital Markets upgraded Coherent (COHR) and Applied Optoelectronics (AAOI) following Marvell's (MRVL) acquisition of Lumentum (LITE). The upgrades are tied to the companies' involvement in the AI Optical sector.

Oracle plans to raise $20 billion via stock and bond offerings to fund AI and cloud infrastructure expansion. Marvell to acquire Lumentum for $115 billion in an all-stock deal. Alphabet shares fell 12.6%, erasing $482 billion in market value.

Lumentum (LITE) and Marvell (MRVL) are merging, with LITE shareholders receiving 4.5 MRVL shares per share. The deal values LITE at a 23.9% premium, but MRVL's share price drop reduces the effective payout. Both stocks fell sharply, with concerns about dilution and market uncertainty. Lumentum's optical components are in high demand, but the merger's impact on the optical trade remains uncertain.

Lumentum (LITE) and Marvell are combining to push AI optical connectivity, aiming for $550B market by 2030. Lumentum's $5B revenue win and Marvell's $1B synergies expected. Pro forma revenue at $17.7B, with accretive margins. Deal driven by scale-up optical connectivity demand.

Marvell (MRVL) agreed to buy Lumentum (LITE) in an all-stock deal valued at $115B. Lumentum shares fell 12% on the news. Citrini Research suggests Lumentum's management expects the AI boom to end in 2-3 years, which could negatively impact Micron (MU), whose earnings are expected to double this fiscal year.