Marvell to acquire Lumentum in $115 billion all-stock transaction
On November 2, Marvell Technology and Lumentum announced a definitive all-stock acquisition agreement assigning Lumentum an enterprise value of $115 billion. The exchange ratio is 4.500 Marvell shares for each Lumentum share, leaving Marvell holders with approximately 67% of the combined company and Lumentum holders with approximately 33%. The companies say the combination could address a $550 billion market, generate more than $1 billion in annual run-rate cost synergies and increase Marvell’s non-GAAP earnings per share in the first year after completion.
Why it matters
The all-stock structure makes Marvell’s eventual share count and ownership split central to the transaction economics, while Lumentum holders receive Marvell equity rather than cash. Marvell expects the combination to expand its connectivity portfolio and improve its long-term financial profile, but completion remains subject to the transaction process and the timing reported across materials is inconsistent.
Key facts
- 1The definitive agreement assigns Lumentum an implied enterprise value of $115 billion and sets an exchange ratio of 4.500 Marvell shares for every Lumentum share. investor.marvell.com
- 2After closing, Marvell shareholders are expected to own approximately 67% of the combined company on a fully diluted basis, with Lumentum shareholders owning approximately 33%. investor.marvell.com
- 3The implied consideration represents approximately a 23.9% premium based on the companies’ unaffected closing prices on October 28, 2026. investor.marvell.com
- 4The companies estimate more than $1 billion in annual run-rate cost synergies and say the transaction should be accretive to Marvell non-GAAP earnings per share in year one post-close. investor.marvell.com
- 5The combined company is expected to address a total addressable market of $550 billion. investor.marvell.com
Open questions
- The expected closing timetable differs across materials: one reports the first half of 2027, while others report 2028 or early 2028.
Summary written by AlphAI AI Desk from 14 of 56 sources. Not investment advice. Figures are as stated by the linked sources.