Marvell to acquire Lumentum in $115 billion deal - Startups and venture capital

Marvell has agreed to buy optical chip and networking equipment maker Lumentum in an all-stock transaction valued at $115 billion including debt, creating one of the largest deals in technology history.

Custom chip designer Marvell has signed an agreement to acquire Lumentum, a maker of optical chips and networking equipment, in an all-stock transaction with an enterprise value of $115 billion, including debt. The deal gives the transaction an equity value of approximately $80 billion, with Marvell offering 4.5 shares of common stock for each Lumentum share.

The planned acquisition ranks among the largest technology deals on record. Its stated value exceeds Microsoft’s $68.7 billion purchase of Activision Blizzard in 2022 and Dell’s $67 billion acquisition of EMC in 2016.

Marvell and Lumentum also share a major strategic investor: Nvidia. In March, Nvidia invested $2 billion in Lumentum to support research and development and the expansion of its manufacturing facilities, as part of a multiyear agreement to purchase the company’s advanced laser components. Later that month, Nvidia invested another $2 billion in Marvell to strengthen its optical networking and chip portfolio.

Marvell said the combination with Lumentum will position it as a leader in AI connectivity, with products spanning chips and data centers. The transaction is expected to close during the first half of calendar year 2028, subject to approval from both companies’ shareholders and regulators.

Sources: TechCrunch.