Ing. Calogero Bono
Marvell Technology has agreed to acquire Lumentum, a maker of optical components and lasers, in an all-stock deal. According to TechCrunch, the enterprise value is $115 billion, debt included, while the equity value is about $80 billion. It is one of the largest acquisitions in tech history. It matters because it shows where the AI race is heading, from chips to photonics, meaning the use of light to connect servers.
A few terms before we get into the facts. All-stock means a deal paid only in shares, with no cash. Enterprise value is the total company value including debt, while equity value measures only the market value of the shares. Photonics is the technology that transmits data with light instead of electrical signals. Interconnect is the high-speed link between chips, servers and racks. Indium phosphide is a semiconductor used to make optical lasers.
What does the deal between Marvell and Lumentum involve?
Marvell, a company that designs custom chips, will offer 4.5 common shares for each Lumentum share, according to TechCrunch. HDblog also reports the same exchange ratio and the same dual valuation.
Closing is expected in the first half of 2028, provided shareholders of both companies and regulators give their approval. Marvell states that with Lumentum it will become a leader in AI connectivity, with products ranging from chips to data centers.
Is it really among the biggest acquisitions ever?
Sources place it among the largest in the sector. The comparison is with Microsoft's 2022 purchase of Activision Blizzard for $68.7 billion and Dell's 2016 acquisition of EMC for $67 billion.
The comparison holds if you look at the equity value of about $80 billion. With the $115 billion enterprise value the gap widens, but that figure includes debt.
If you want to follow other record numbers in the sector, we covered how Apple closed a quarter at $114.5 billion in revenue.
What role does Nvidia play in this deal?
Nvidia is a shareholder in both companies. In March it invested $2 billion in Lumentum, as part of a multi-year agreement to buy its advanced laser components. In the same month it invested another $2 billion in Marvell, to strengthen its chip and optical networking business.
The Register also recalls that Jensen Huang, at Computex 2026, had projected a $1 trillion valuation for Marvell thanks to its photonics investments. Today the market capitalization, the paper notes, is $180 billion.
Why do AI data centers need optics?
According to The Register, beyond 400 Gbps per lane copper hits its limit. A 400 Gbps signal travels over copper for about 1.25 meters, and every time the speed doubles the reach is halved.
Photonics does not suffer from this limit and can cover kilometers. It makes it possible to extend systems across entire rows of racks and, according to the paper, reduces power use and cooling for each rack.
The brake so far has been energy. In 2024 Huang explained that optics would add 20 kW to a Blackwell system already drawing 120 kW under load. Marvell then paid about $3.5 billion for Celestial AI in February 2026, for more efficient optical technologies.
To go deeper, read Apple closes fiscal 2026 with $478.8 billion in revenue, but memory weighs on margins and Binance reopens withdrawals, FBI attributes the $6.3 billion theft to TraderTraitor.
Limits to know
The deal is not closed yet and depends on shareholders and regulators, with a 2028 timeline. The sources do not mention conditions, penalties or any remedies requested by authorities. The figures of $100 and $115 billion vary between announcements, because the first is cited in the official post reported by HDblog and the second includes debt. We do not know how the products or Lumentum's customer relationships will change.
What changes for those working in digital
For those working in digital in Italy, the effect is indirect but real. AI infrastructure is becoming more optical and less copper-based, and this affects the power use, space and costs of the data centers that host these workloads. If you use cloud or AI services, prices and availability also depend on these supply choices. Those who run their own servers should follow the evolution of high-speed networks, since optical components will become more central. A concentration of suppliers can also reduce choice and push costs up.
Our take
The deal has a clear industrial logic, because the AI bottleneck is shifting from computing to the connections between chips. It does leave some doubts. Paying $115 billion in shares, with a stock worth $180 billion, ties the price to market expectations, not just revenue. The link with Nvidia, a shareholder in both companies, makes the picture even more intertwined. This is not a criticism of the project, but a reminder to distinguish between technological potential and financial valuation.
Frequently asked questions
How much is Marvell's acquisition of Lumentum worth?
The enterprise value is $115 billion, debt included. The equity value is about $80 billion. The deal is entirely in stock.
When will the deal close?
Closing is expected in the first half of 2028. It requires approval from shareholders of both companies and from regulatory authorities.
What will Lumentum shareholders receive?
They will receive 4.5 Marvell common shares for each Lumentum share they own. No cash payment is planned, since the deal is entirely in stock.
Why is Marvell focusing on optics?
Because, according to The Register, copper reaches its limit beyond 400 Gbps per lane. Optics covers longer distances and reduces power use and cooling in racks.
What is the link with Nvidia?
Nvidia is a shareholder in both companies. In March it invested $2 billion in Lumentum and another $2 billion in Marvell.
What to watch until the 2028 closing
More than a year and a half will pass between the announcement and the closing. During that time, regulatory decisions and the first market signals will matter.
- Follow the shareholder vote and any requests from authorities, since they can change timing and terms.
- Check the quarterly results of Marvell and Lumentum to see whether demand for optical components holds up.
- Watch the roadmaps of AI system makers to see when co-packaged and pluggable optics enter the racks.
