Marvell inks record-breaking $115B AI deal

Marvell Technology has agreed to buy Lumentum, a maker of lasers and optical components for AI and cloud computing, in a $115 billion all-stock deal. It is the largest M&A transaction of 2026 on an equity basis and the second-largest ever in the global tech sector, behind the SpaceX-xAI merger. The combined company will compete directly with Broadcom. Under the terms, Lumentum shareholders receive 4.5 Marvell shares per Lumentum share, implying about $1,132 per share and a roughly 23.9% premium to the pre-speculation closing price. Marvell holders will own about 67% of the combined company and Lumentum holders about 33%. Matt Murphy remains chairman and CEO, and three Lumentum directors, including CEO Michael Hurlston, join Marvell's seven-member board. The companies cite a $550 billion addressable market, line of sight to more than $1 billion in annual cost synergies, and first-year earnings-per-share accretion. Closing is expected in the first half of 2028 and requires shareholder and regulatory approvals. Marvell shares fell as much as 7% and Lumentum shares fell 12% after the announcement, reflecting investor concerns about the price and the fragile economics of the AI data center boom.

(Source：LinkedIn)