Marvell Technology is reportedly in advanced talks to acquire Lumentum Holdings in an all-stock transaction that could be announced as early as the following week, subject to regulatory approval. Lumentum’s market capitalization is estimated at $83 billion to $85 billion, compared with approximately $196 billion to $221 billion for Marvell. The goal would be to combine Marvell’s semiconductors with Lumentum’s lasers and optical components to accelerate data transfers between chips in AI data centers and compete more effectively with companies such as Broadcom. After the reports emerged, Marvell shares fell 8% to 15% in after-hours trading while Lumentum shares rose, as investors focused on the dilution risk associated with an all-stock deal. The transaction would expand Marvell’s optical interconnect strategy, particularly since some Lumentum products are already sold out through early 2029 and the company expects to be unable to meet roughly 70% of certain orders next year.
Source: Read the original article
