Custom chip designer Marvell has signed a deal to acquire Lumentum, which makes optical chips and networking equipment. The all-stock transaction has an enterprise value of $115 billion, including debt, and an equity value of about $80 billion.
Under the agreement, Marvell will give Lumentum shareholders 4.5 shares of Marvell common stock for each Lumentum share. The $115 billion enterprise value makes it one of the largest acquisitions in tech history.
For comparison, Microsoft bought Activision Blizzard for $68.7 billion in 2022, while Dell bought EMC for $67 billion in 2016. Both figures are well below the enterprise value of the proposed Marvell deal.
Nvidia has invested in both companies
The companies share a major shareholder in Nvidia. In March, Nvidia invested $2 billion in Lumentum as part of a multiyear agreement to buy its advanced laser components. The investment was intended to support Lumentum’s research and development and expansion of its fabrication facilities.
Later that month, Marvell announced a separate $2 billion investment from Nvidia. Marvell said the investment was intended to expand its optical networking and chips portfolio.
Marvell says acquiring Lumentum will make it a leader in AI connectivity, with products ranging from chips to data centers. The transaction is expected to close in the first half of calendar year 2028, subject to approval from both companies’ shareholders and regulators.
