Marvell Technology (MRVL) announced on November 2, 2026 a definitive agreement to acquire Lumentum (LITE) in an all-stock transaction, with an implied enterprise value of US$ 115 bi for Lumentum. Lumentum shareholders will receive 4,500 Marvell common shares for each Lumentum share, equivalent to about US$ 1,132 per share, a premium of approximately 23.9% to the closing price on October 28, 2026, the last trading day before market speculation about the deal began.
After closing, current Marvell shareholders will own about 67% of the combined company, on a fully diluted basis, and Lumentum shareholders about 33%. The agreement was unanimously approved by the boards of both companies. Matt Murphy will remain chairman of the board and CEO. Three Lumentum directors, including CEO Michael Hurlston, will join the Marvell board, which currently has seven members.
The companies expect the transaction to expand the combined total addressable market (TAM) to US$ 550 bi and improve long-term revenue growth and adjusted (non-GAAP, which exclude items the company considers non-recurring) gross and operating margins. They also cite the prospect of more than US$ 1 bi in annual cost synergies and an expectation that the acquisition will increase Marvell's adjusted earnings per share in the first year after closing.
Closing is expected in the first half of 2028 and is subject to approval by the shareholders of both companies, regulatory clearances and other customary conditions.
Along with the announcement, Marvell released preliminary revenue for the third fiscal quarter of 2027, in line with its prior guidance. The company kept the midpoint of the guidance and narrowed the expected range to plus or minus 2%, versus plus or minus 5% in the original range. The preliminary figures are unaudited and may change until the full results are released.
