In an announcement made during U.S. hours, semiconductor maker Marvell said it would acquire optical communications components maker Lumentum. The consideration will be paid entirely in stock, and market reaction was mixed, with the share prices of both companies fluctuating sharply after trading began.
Early on 2 November 2026 U.S. time, Marvell announced that it would acquire Lumentum. The consideration will be paid entirely in Marvell stock, with the acquisition valued at $115 billion. Regulatory approval and the support of both companies’ shareholders are required to complete the acquisition, which is expected to close in the first half of 2028.
If the acquisition is completed, a company combining Marvell’s semiconductor design capabilities with Lumentum’s optical communications technology is expected to be created. The combined company is said to be capable of increasing communications capacity between chips, servers and data centers, with the addressable market estimated at approximately $550 billion.
Because the transaction will be paid in stock, a proposal has been made for Lumentum shareholders to receive 4.5 Marvell shares for each Lumentum share they own, meaning that the risk of share-price fluctuations will be borne by shareholders, reflecting the initial assumptions. Immediately after the announcement, Lumentum shares fell approximately 18.6% and Marvell shares fell approximately 12.7%.
The value of the acquisition consideration may fluctuate depending on the share prices at the time of the announcement. Lumentum shareholders are expected to own approximately one-third of the combined company, and the acquisition is expected to close in the first half of 2028.