Marvell to acquire Lumentum for $115 billion in all-stock deal
Marvell agreed to buy Lumentum in an all-stock deal valued at $115 billion, under which Lumentum shareholders receive 4.5 Marvell shares for each share.
Marvell agreed to acquire Lumentum in an all-stock transaction under which Lumentum shareholders receive 4.5 Marvell shares for every share they own.
The deal includes no cash component, and Marvell set the implied enterprise value of the transaction at $115 billion, according to CNBC.
The boards of both companies unanimously approved the deal, which is expected to close in the first half of 2028 subject to obtaining the necessary approvals.
The deal combines Marvell's semiconductor expertise with Lumentum's optical component capabilities, in a step aimed at strengthening artificial intelligence data centre infrastructure.
What do these terms mean?
Stock-swap deal: An acquisition in which the value of the acquired company is paid in shares of the acquirer instead of cash.
Enterprise value: The full value of the company including debt, not only the market value of its shares.
Fixed exchange ratio: The number of shares the acquired company's shareholder receives for each share, which does not change with market price.
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