New Details on Marvell-Lumentum Deal: All-Stock Merger at 24% Premium

Marvell's acquisition of Lumentum will be structured as an all-stock transaction at a 24% premium, projected to yield over $1 billion in annual savings.

Chipmaker Marvell Technology's planned acquisition of optical component maker Lumentum will be structured as an all-stock transaction, Israeli outlets ynet and Globes reported. The deal represents a premium of approximately 24% over Lumentum's share price prior to reports of the talks.

According to the companies' announcement, the merger is projected to generate annual savings exceeding $1 billion and expand their addressable market to $550 billion. The acquisition is intended to bolster competition against Broadcom and address surging demand for high-speed networking in artificial intelligence data centers, with completion expected in the first half.