Marvell agrees to buy San Jose laser maker Lumentum in $115 billion all-stock deal
Lumentum's lasers and optical parts carry data between AI chips as light. Its shareholders would get Marvell stock worth about 24% more than their shares were trading for before deal talk began.
Marvell Technology said Monday it has agreed to buy Lumentum, a San Jose maker of lasers and optical parts for AI data centers, in an all-stock deal the companies valued at about $115 billion, including debt. Lumentum shareholders would get 4.5 Marvell shares for each share they own, worth about $1,132 a share and a 23.9% premium over Lumentum's Oct. 28 closing price, the companies said.
Why light matters for AI
AI data centers link thousands of chips that must constantly trade data. Copper wires struggle to carry that much data over longer distances without using lots of power, so the industry is shifting to fiber-optic links that send data as pulses of laser light, the companies said. Lumentum makes the lasers, optical transceivers (modules that convert electrical signals to light and back) and optical circuit switches that steer light between machines. Marvell, which runs its U.S. operations from Santa Clara, designs the chips that move data, network switches and custom AI chips for big cloud companies.
About Lumentum
Lumentum was spun off in 2015 from JDSU, now called Viavi, according to its annual report. It later bought Oclaro in 2018, NeoPhotonics in 2022 and Cloud Light in 2023, and had about 13,757 employees as of June. It also makes lasers used for 3D face sensing in phones. On Monday it reported quarterly revenue of $1.26 billion, up 136.5% from a year earlier.
Deal terms
After closing, Marvell shareholders would own about 67% of the company and Lumentum's about 33%. Both boards approved the deal, which still needs votes by both companies' shareholders and government approvals. The companies expect it to close in the first half of 2028. Marvell CEO Matt Murphy would stay chairman and CEO, and three Lumentum directors, including CEO Michael Hurlston, would join Marvell's board.
The companies said they expect more than $1 billion a year in cost savings and that the deal would add to Marvell's adjusted earnings in its first year. They did not say whether jobs would be cut. Lumentum's San Jose headquarters is on Ridder Park Drive.
AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity.
Source: Marvell and Lumentum joint press release, Nov. 2, 2026; Marvell-Lumentum investor presentation; Lumentum annual report (Form 10-K); Lumentum first-quarter results, Nov. 2, 2026