Marvell agrees to buy Lumentum for about 115 billion dollars to own AI optics

Chip designer Marvell has agreed to buy Lumentum, a maker of lasers and optical parts, in an all-stock deal. The deal values Lumentum at about 115 billion dollars including debt. Lumentum holders get four and a half Marvell shares for each share they own. The two companies say AI data centres need far more bandwidth than copper cables can carry, so links are moving to light.

The price is about 24 percent above Lumentum's share price before talks were reported. Marvell holders would own about two thirds of the combined company. The firms expect more than one billion dollars a year in cost savings. Closing needs approval from both sets of shareholders and from regulators, and is planned for the first half of 2028. Marvell shares had fallen sharply when the talks first leaked last week.