Marvell and Lumentum said on Nov. 2, 2026 that they will combine in an all-stock deal that puts Lumentum's implied enterprise value at $115 billion. The companies expect it to close in the first half of 2028.

What changed

  • Terms: each Lumentum share converts into 4.500 Marvell shares, a fixed ratio. The companies put that at about $1,132 per Lumentum share, roughly a 23.9% premium to the Oct. 28, 2026 unaffected closing prices.
  • Ownership: Marvell holders would own about 67% of the combined company and Lumentum holders about 33%, fully diluted.
  • Leadership: Matt Murphy stays Chairman and CEO. Three Lumentum directors, including CEO Michael Hurlston, join Marvell's seven-member board. The release does not give a name or headquarters for the combined company.
  • Approvals: both boards approved the deal unanimously. It still needs both sets of stockholders, regulators and customary closing conditions.
  • Company claims: a $550 billion addressable market, more than $1 billion a year in cost savings at run rate, and a boost to Marvell's non-GAAP earnings per share in the first year after closing. These are the companies' own projections. Marvell also kept its preliminary fiscal Q3 2027 revenue midpoint and narrowed the range to plus or minus 2%, from 5%.

What Lumentum makes

Lumentum, based in San Jose, California, makes lasers, optical transceivers and related modules. In a data center, those parts turn electrical signals into light and send them over fiber between servers and switches, which carries more data than copper wire over longer distances.

The release also cites optical circuit switching and indium phosphide chip manufacturing. Marvell calls the combination a "category leader in AI connectivity," pairing its own networking and custom chips with Lumentum's optics.

One more detail is not in the release. Reuters reported earlier in 2026, in separate stories, that Nvidia invested $2 billion in each company. Those reports are not about this deal, and neither company's release mentions the investment.

Who is affected

Shareholders of both companies vote next, and regulators review the deal. Until closing, the two companies operate separately, and 2028 is their expectation, not a guarantee.

What this means for you

Nothing changes for consumers now. This is about who supplies the networking inside AI data centers, the hardware behind AI apps. For more on that spending, see how Meta is financing its AI buildout and the Nvidia GPU supply squeeze. This is not investment advice.

What we checked

The terms, ownership split, timeline, leadership and company claims come from Marvell's press release, which we read at 7:52 a.m. ET on Nov. 2. The Nvidia investment is reported, not in the companies' release, and we have not verified it. Dollar figures and savings are company claims.