AI · November 5, 2026
Marvell to Acquire Lumentum for 80 Billion USD
Marvell has agreed to acquire Lumentum, a manufacturer of optical components for data centers.
The deal is valued at approximately 80 billion USD and will be paid entirely in shares. Under the terms announced on Monday, Lumentum shareholders will receive 4.5 Marvell shares for every common share of Lumentum they own. When including debt obligations, the total value of the transaction is about 115 billion USD. Lumentum has a market value of around 76 billion USD, while Marvell is valued at approximately 172 billion USD.
Marvell develops specialized chips for artificial intelligence and other technologies that facilitate processor connectivity and data transfer within data centers. Lumentum produces lasers, chips, and equipment for optical connections used in data center servers. By acquiring Lumentum, Marvell intends to expand its range of solutions that use light to transmit data between chips and servers. Lumentum operates in the field of photonics, creating technologies that allow computers to transfer data between semiconductors faster than traditional copper connections.
Data centers have become the primary business direction and growth driver for Marvell, whereas they accounted for less than 10 percent of the company's revenue in 2016. Marvell is known for developing specialized artificial intelligence chips for Amazon Web Services and has expanded a commercial partnership with Google, which includes the right for Google to acquire Marvell shares.
Nvidia is a strategic investor in both companies. In early March, Nvidia signed a multiyear contract to purchase advanced laser components from Lumentum and invested 2 billion USD into Lumentum to support research, development, and United States production facilities. In the same month, Nvidia invested 2 billion USD in Marvell through a strategic partnership to simplify the integration of Nvidia systems with specialized artificial intelligence chip solutions.