Marvell Technology is to acquire Lumentum Holdings in an all-stock deal valued at $115 billion, creating what the companies describe as a leader in connectivity products for artificial intelligence infrastructure.
Lumentum manufactures lasers, circuit switches and other equipment used in data centres, while Marvell makes semiconductor products for data infrastructure. The companies said combining their technologies and engineering expertise would enable an end-to-end system for a wider range of customers.
Marvell’s chief executive, Matt Murphy, said the deal came as AI infrastructure moved towards optical connectivity.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” Mr Murphy said. “The companies that move first and help define this transition will set the standard for decades to come.”
The announcement follows a reported decision by Nvidia earlier this year to buy a $2 billion stake in Lumentum.
Investors appeared less convinced by the acquisition. Marvell shares fell by more than 1% before the opening bell, while Lumentum stock dropped by almost 3% after the all-stock transaction was announced.
The deal requires approval from shareholders and is expected to close in the first half of 2028. It comes during a boom in data-centre construction that has also prompted a backlash nationwide.
