Marvell Technology announced Monday that it would acquire Lumentum Holdings in a deal valued at $115 billion, one of the biggest tech industry deals ever.
Marvell said the purchase of Lumentum, which manufactures lasers, circuit switches and other products used for data centers, would make the enlarged company a "category leader in AI connectivity." Marvell, founded in 1995, makes data infrastructure semiconductor products.
"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. "The companies that move first and help define this transition will set the standard for decades to come."
Nvidia earlier this year said it was buying a $2 billion stake in Lumentum, according to Bloomberg.
Marvell, despite the aggressive pullback in AI stocks last week, believes the investment is still warranted. Markets appear less certain. Marvell shares slid more than 1% before the opening bell, and Lumentum fell almost 3% after the announcement of the all-stock deal.
Marvell said that the merger will unite the companies' complementary technologies and engineering expertise, allowing it to create an end-to-end system that meets a broader set of customer needs.
The deal, subject to stockholder approval, is expected to close in the first half of 2028. It comes amid a boom in data center construction, which has sparked backlash nationwide.