Marvell Technology has agreed to acquire optical-components maker Lumentum in an all-stock transaction with an implied enterprise value of $115 billion, the largest semiconductor acquisition on record. The companies announced the definitive agreement on 2 November 2026.

Under the terms, Lumentum shareholders will receive 4.500 Marvell shares for each Lumentum share they own. The companies put the implied value at about $1,132 per Lumentum share, a premium of roughly 23.9% over the unaffected closing prices on 28 October, the last trading day before reports of the talks surfaced.

Once the deal closes, Marvell shareholders will own about 67% of the combined company and Lumentum shareholders about 33%, on a fully diluted basis. Both boards approved the transaction unanimously. Matt Murphy will stay on as chairman and chief executive, and three Lumentum directors, including president and chief executive Michael Hurlston, will join the combined board.

The deal is a bet that optical connectivity will matter as much to AI data centres as the processors themselves. Lumentum makes the lasers and optical components that carry data between AI chips and servers, while Marvell supplies the networking chips, switches and custom silicon around them. The companies say the combination expands their addressable market to $550 billion and should deliver more than $1 billion in annual run-rate cost savings.

The transaction still needs approval from both sets of shareholders and from regulators, and the companies expect it to close in the first half of calendar 2028. Lumentum reported fiscal first-quarter revenue of $1.26 billion on the same morning as the announcement, up 136.5% on a year earlier, reflecting surging demand for AI optics.