Tech
Marvell in Advanced Talks to Buy Lumentum, Bloomberg Reports
Marvell Technology is in advanced discussions to buy data-centre optics maker Lumentum Holdings, Bloomberg News reported on Wednesday, in a deal that could be announced as soon as next week — though neither company has confirmed the talks.
Photo: Hustvedt / Wikimedia Commons (freely licensed). Photo shows a generic optical fibre cable, not a Marvell or Lumentum product.
Marvell Technology is in advanced discussions to buy data-centre optics maker Lumentum Holdings, Bloomberg News reported on Wednesday, citing people familiar with the matter. The talks are still private, and the deal could be announced as soon as next week, according to the report.
Neither company has confirmed the discussions: Marvell and Lumentum did not immediately respond to Reuters requests for comment. The report remains unconfirmed, and there is no guarantee a deal will be reached.
Lumentum shares rose about 11 percent in extended trading following the report, valuing the company at roughly 91 billion dollars, while Marvell shares fell more than 8 percent.
Lumentum makes optical components used in communications networks and data centres, areas that have drawn growing investor interest as AI workloads drive demand for faster data transmission. Marvell had cash and cash equivalents of about 3.92 billion dollars as of its latest quarter.
The scale of a potential deal could raise questions about financing and integration, Bernstein analysts said, adding that an acquisition of that size would likely be impossible to fund entirely with cash.
Marvell has emerged as one of the biggest beneficiaries of the AI spending boom, with its shares nearly tripling this year as demand for its custom AI chips and networking products surged. The potential acquisition would further its push into optical technologies used in AI infrastructure, a strategy Bernstein analysts said was reinforced by the company's acquisition of photonics firm Celestial AI in a 3.25 billion dollar deal announced late last year.
Marvell raised its fiscal 2028 revenue forecast earlier this month to 20 billion dollars from 15 billion dollars, citing strong demand for its custom AI chips and networking products used in data centres.
Source: Reuters
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