NEW YORK — Chipmaker Marvell Technology said Monday it will acquire Lumentum Holdings in an all-stock deal valued at $115 billion, one of the largest technology deals ever, CBS News reported.
Lumentum makes lasers, circuit switches and other products used in data centers. Marvell, founded in 1995, makes semiconductor products for data infrastructure. The company said the combination would make it a “category leader in AI connectivity.”
“AI infrastructure is undergoing a fundamental architectural shift toward optical connectivity, creating an opportunity that comes along once in a generation,” Marvell CEO Matt Murphy said in a statement.
Marvell said the merger would combine the companies’ technology and engineering know-how to offer customers a complete system.
Investors were cautious. Marvell shares slid more than 1% before the opening bell, and Lumentum fell almost 3% after the announcement, CBS News reported. AI stocks pulled back sharply last week.
Nvidia said earlier this year it was buying a $2 billion stake in Lumentum, according to Bloomberg.
The deal needs stockholder approval and is expected to close in the first half of 2028. It comes amid a nationwide boom in data center construction, including in metro Phoenix, that has drawn growing pushback from residents.
Sources: CBS News. Thee Arizona Times uses AI-assisted reporting reviewed against the sources listed.
Photo: Rsparks3 / CC0 via Wikimedia Commons.
