Data center chipmaker Marvell Technology has agreed to acquire optical component manufacturer Lumentum Holdings in an all-stock deal valued at $115 billion including debt, the companies announced Monday.
The megadeal marks one of the largest corporate acquisitions in technology history, combining Marvell’s custom artificial intelligence silicon and networking switch portfolio with Lumentum’s high-performance lasers and optical circuit hardware.
Under the terms approved unanimously by both boards of directors, Lumentum stockholders will receive 4.5 shares of Marvell common stock for each share owned. Following the transaction, existing Marvell shareholders will hold roughly 67 percent of the combined entity, while Lumentum investors will own approximately 33 percent.
The takeover is designed to address a fundamental bottleneck in AI infrastructure: the physical limits of traditional copper wiring inside massive server clusters. As AI models grow exponentially, tech giants are shifting data centers toward light-based optical interconnects to transfer massive datasets faster while consuming less electricity.
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” said Matt Murphy, chairman and chief executive officer of Marvell.
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