Semiconductor company Marvell Technology has agreed to acquire optical networking equipment maker Lumentum in a major all-stock transaction with an enterprise value of approximately $115 billion, including debt. The deal is one of the largest acquisitions in the technology industry and reflects growing demand for infrastructure supporting artificial intelligence.

Under the agreement, Marvell will provide 4.5 shares of its common stock for each Lumentum share. The transaction has an estimated equity value of around $80 billion, with the final completion subject to shareholder and regulatory approvals.

Lumentum develops optical components and networking technologies used in data centres and communications infrastructure. Marvell designs custom chips and other semiconductor products that help power computing and networking systems.

Marvell expects the acquisition to strengthen its position in AI connectivity by combining its chip technology with Lumentum’s optical networking capabilities. The companies aim to provide products that help data centres move large amounts of information more efficiently.

The transaction is expected to close during the first half of 2028, provided the necessary approvals are obtained. The deal demonstrates how technology companies are investing heavily in infrastructure to meet the growing computing and networking demands of artificial intelligence.

Source: TechCrunch