Marvell Technology has agreed to acquire Lumentum in an all-stock transaction valued at $115 billion, bringing together semiconductor and optical technology businesses seeking to expand their role in artificial intelligence infrastructure.
Matt Murphy, Marvell’s chairman and CEO, described the proposed acquisition as a “once in a generation” opportunity to combine the companies’ capabilities and establish a leader in AI connectivity.
Speaking alongside Lumentum CEO Michael Hurlston on FOX Business’ “The Claman Countdown,” Murphy said the companies could create a new category in the technology industry by combining their respective strengths.
“It’s very rare that you can find two companies of the caliber of Lumentum and Marvell,” Murphy told host Liz Claman, explaining that the companies could combine their expertise to establish a category leader.
Murphy also argued that AI connectivity would become as consequential as computing, memory, semiconductor fabrication and intellectual property licensing.
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The agreement, announced on Monday, brings together Marvell’s semiconductor technologies and Lumentum’s expertise in photonics, including high-performance lasers, optical transceivers and optical circuit switching.
The companies said the combination is intended to address increasingly complex connectivity requirements across next-generation AI infrastructure.
According to the companies’ joint announcement, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each Lumentum share they own.
Following the transaction’s completion, existing Marvell shareholders are expected to own approximately 67% of the combined company, while Lumentum shareholders will own about 33% on a fully diluted basis.
The companies expect the proposed combination to create a broader connectivity portfolio spanning semiconductor design, optical technologies and specialized manufacturing.
Their stated objective is to integrate electrical and optical technologies more closely to develop optimized connectivity solutions for AI infrastructure.
Hurlston said both businesses were performing well independently but expected additional benefits from combining their operations.
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“What we see, Liz, is a multiplying effect,” Hurlston said, predicting that the combined company would perform better over the next two years than the businesses would separately.
Murphy also told FOX Business that the companies had received substantial support from hyperscalers, which operate large-scale computing and data center infrastructure.
Nvidia, a strategic investor in both companies, also featured in the executives’ discussion where Hurlston said Murphy had discussed the potential acquisition with Nvidia CEO Jensen Huang early in the process. He characterized Nvidia’s reaction as “super positive.”
Hurlston added that combining the companies could help them deliver more products to Nvidia more quickly.
The transaction remains subject to shareholder approvals, regulatory clearances and other customary closing conditions.
According to the companies’ announcement, completion is expected in the first half of 2028.