Deal
Marvell Technology has agreed to acquire Lumentum, the companies announced Nov. 2, in an all-stock deal that gives Lumentum an implied enterprise value of $115 billion. The deal combines chip and optical technology as AI data centers move from copper to optical connections.
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Deal terms
Fox Business reported that the deal is the largest merger between two publicly traded companies. Under the agreement:
- Lumentum stockholders will receive 4.5 Marvell shares for each Lumentum share, about $1,132 per share at announcement and a 23.9% premium to the Oct. 28 closing price.
- Marvell stockholders will own about 67% of the combined company, and Lumentum stockholders about 33%.
- Matt Murphy remains chairman and CEO, and three Lumentum directors, including CEO Michael Hurlston, will join Marvell’s board.
The deal is expected to close in the first half of 2028, pending stockholder and regulatory approvals.
Why optical matters
Marvell makes AI chips and data center technology. Lumentum makes lasers and optical parts that carry data as light between chips and servers.
The companies say that growing bandwidth needs and the physical limits of copper are pushing AI infrastructure toward optical technology, which requires closer co-design of electrical and optical components. Murphy called the shift “an opportunity that comes along once in a generation.”
The combined company expects a $550 billion addressable market and sees a line of sight to more than $1 billion in annual run-rate cost synergies. Nvidia is a strategic investor in both companies, and Hurlston said its reaction to the deal has been positive.
You can read the full announcement on Marvell’s investor site.
Bigger chips, bigger bills? What BPO providers should watch
The deal concentrates more of the hardware behind AI and network traffic with a larger supplier. That could affect the cost and availability of the cloud and carrier capacity that AI-driven contact center and automation services run on.
Nothing changes before the expected 2028 close, but providers planning multiyear AI and network investments should watch pricing and supply terms from their cloud and carrier partners.
Read more Unity Communications and BPO News on our main page.
Marvell Technology, Inc. (2026, November 2). Marvell and Lumentum to combine, creating a category leader in AI connectivity [Press release]. https://investor.marvell.com/news-events/press-releases/detail/1040/marvell-and-lumentum-to-combine-creating-a-category-leader-in-ai-connectivity
Moriarty, N. (2026, November 2). Marvell, Lumentum tout historic $115B deal to create ‘category leader’ in AI connectivity. Fox Business. https://www.foxbusiness.com/media/marvell-lumentum-tout-historic-115b-deal-create-category-leader-ai-connectivity
