Marvell has announced an all-stock acquisition of optical chip and networking equipment maker Lumentum in a deal valued at an enterprise value of $115 billion.
The agreement, supported by major shareholder Nvidia, aims to combine both portfolios to scale AI connectivity solutions from chips to data center infrastructure, with closure anticipated in 2028.
The total value of the deal is $115 billion, including debt, while the net value of the shares is estimated at around $80 billion. Payment will be made exclusively in shares, as Marvell will give 4,5 of its own shares for each Lumentum share.
To put the size into perspective, this acquisition surpasses historic deals such as Microsoft's purchase of gaming company Activision Blizzard in 2022 for $68,7 billion or Dell's purchase of EMC in 2016 for $67 billion.
The common shareholder and Nvidia's investments
An interesting fact is that the two companies share a common and very powerful shareholder: Nvidia.
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In March, Nvidia invested $2 billion in Lumentum to support its research, development and factory expansion as part of a multi-year deal for laser components. Later that month, Nvidia invested an additional $2 billion in Marvell to bolster its chips and optical networking.
What does the agreement mean for the future?
Marvell management says that joining forces will make it a leading force in connectivity for artificial intelligence, offering products ranging from specialized chips to equipment for large data centers.
The completion of the agreement is expected to take place in the first half of 2028, while until then it remains subject to approval by the shareholders of both companies as well as by the relevant regulatory authorities.
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