The deal
Marvell Technology has agreed to buy Lumentum, a maker of lasers and optical components for AI data centres. The transaction is structured entirely as a stock swap, with the companies announcing the deal on Monday.
The numbers
The companies valued Lumentum at $115bn including debt. Lumentum shareholders will get 4.5 Marvell shares for each share they hold.
Why it matters
Optical components are a critical part of the hardware carrying high-speed traffic between servers in AI data centres. Lumentum's Nvidia backing puts the deal at the centre of the AI hardware supply chain, as Marvell looks to expand its footprint in data centre hardware.
