Wire reporting: (Reuters, via CNBC)

Marvell Technology said Monday it had agreed to acquire Lumentum Holdings in an all-stock deal with an implied enterprise value of $115 billion, including debt, aiming to combine custom chips with optical components used in AI data centers^1,3,5.

Lumentum shareholders would receive 4.5 Marvell shares for each Lumentum share, a fixed ratio that TechCrunch said implied an equity value of about $80 billion^1,3.

The companies said they expect the transaction to close in the first half of 2028, subject to shareholder and regulatory approvals^1,3,5.

Marvell described the combined company as a leader in AI connectivity spanning chips and data-center optics^1,5. On CNBC, Chief Executive Matt Murphy said, "We are going to create a new category of company here"³.

Nvidia invested $2 billion in Lumentum in March alongside a multi-year purchase of laser components, and later that month invested $2 billion in Marvell to expand optical networking and chips, TechCrunch reported¹. Murphy, speaking to CNBC, rejected concerns that those stakes amounted to circular dealmaking³.

CNBC, carrying Reuters, said Marvell was stepping up a challenge to larger rival Broadcom and that Lumentum is roughly half Marvell's size². Marvell this year closed a $3.5 billion purchase of Celestial AI, according to that report, after a multibillion-dollar Celestial deal also noted by CNBC's later story^2,3.

Shares of both companies fell Monday. CNBC said Marvell dropped about 13% and Lumentum nearly 19%³. CBS News, citing earlier trading, said Marvell was down more than 1% before the open and Lumentum almost 3%⁵.

TechCrunch compared the enterprise value with Microsoft's $68.7 billion Activision Blizzard purchase in 2022 and Dell's $67 billion EMC deal in 2016¹. Whether the combination closes as planned, and how regulators treat it, remains unknown^1,5.