AI mega-deal: Marvell to acquire Lumentum for $115 billion

In depth

Chipmaker Marvell announced the acquisition of optical component maker Lumentum in a stock deal. According to Bizportal, the purchase is intended to connect AI chips with the technology that transfers data between them, given the difficulties of copper cables in keeping pace with the growth of data centers. According to Ice, completion of the deal is expected in the first half of 2028.

According to Ynet, the purchase is intended to strengthen competition against Broadcom. According to Israel Hayom, the value of the shares in the deal stands at about $102.5 billion, and the total value of the operation including debt reaches $115 billion. According to Globes, the premium on the share price before reports of the talks stands at about 24%, and according to the companies' announcement, the merger is expected to yield annual savings of more than $1 billion.

According to Channel 14, investors are concerned and the stock recorded sharp declines. According to Calcalist, the acquisition is considered the largest ever by Marvell, and points to the expectation that demand for AI infrastructure will continue to grow.