Marvell Technology’s $115 billion AI connectivity deal puts Lumentum at the center
A major proposed acquisition
Marvell Technology said Monday it would acquire Lumentum Holdings for $115 billion in an all-stock transaction. The company described the proposed purchase as among the biggest deals in technology history.
Focus on optical connectivity
Marvell said the acquisition would help the combined company become a leader in AI connectivity. The company pointed to a shift in AI infrastructure toward optical connections. CEO Matt Murphy said the change creates a rare opportunity. He said companies that act early and shape the transition could influence standards for decades.
Shares fall after announcement
The deal announcement followed a sharp pullback in AI stocks the previous week. Marvell continued to regard the investment as justified, while market sentiment appeared more cautious. Before the opening bell, Marvell shares were down more than 1%. Lumentum shares dropped almost 3% after the all-stock deal was announced.
Nvidia’s earlier investment
Bloomberg reported that Nvidia said earlier in the year it would buy a $2 billion stake in Lumentum. The report did not provide further details about that investment.
Key points
- Marvell plans to acquire Lumentum in an all-stock deal valued at $115 billion.
- Lumentum makes products used in data centers, including lasers and circuit switches.
- Marvell says the deal could strengthen its position in AI connectivity.
- Marvell and Lumentum shares fell before the market opened after the announcement.