Marvell and Lumentum Unite in $115 Billion Merger to Lead AI Connectivity

Marvell Technology Chairman and CEO Matt Murphy and Lumentum CEO Michael Hurlston discussed their record-breaking merger and shared vision for establishing a category leader in AI connectivity during an appearance on “The Claman Countdown.”

Marvell Chairman and CEO Matt Murphy described the chipmaker’s historic $115 billion acquisition of Lumentum as a “once-in-a-generation” opportunity to unite two dominant forces in the AI boom and create a category leader.

Joined by Lumentum CEO Michael Hurlston on Monday’s episode of “The Claman Countdown,” Murphy outlined the record-breaking merger, predicting the transaction will solidify Marvell’s position at the forefront of AI connectivity.

“It is rare to find two companies of the caliber of Lumentum and Marvell—each number one in its respective field—coming together at the right moment to create a category leader in an entirely new category,” he told anchor Liz Claman.

The race to build AI infrastructure is accelerating amid mounting concerns over centralized technological power. (Noah Berger / Getty Images)

“This AI connectivity will prove as consequential as the compute, memory, fabrication, and IP licensing categories,” he said.

Murphy’s remarks follow the announcement of Marvell’s agreement to acquire Lumentum in a landmark $115 billion transaction—the largest merger between two publicly traded companies. The deal combines two major AI enablers with electrical and optical expertise to meet the connectivity demands of next-generation AI infrastructure.

“Both companies are executing exceptionally well,” Hurlston predicted. “What we see, Liz, is a multiplying effect, whereby together we will achieve far more in two years than we could on a standalone basis.”

Under the terms of the all-stock agreement, Lumentum shareholders will receive 4.5 shares of Marvell common stock for each share held, according to Marvell’s announcement.

“It is a historic day for both companies,” Murphy said. “We are combining the best-in-class leader in AI connectivity technology for semiconductors with the leader in photonics—something that has not been done before.”

Marvell Technology Chairman and CEO Matt Murphy (right) appeared alongside Lumentum CEO Michael Hurlston (left) on “The Claman Countdown” on Monday. (Left: Takaaki Iwabu/Bloomberg via Getty Images; Right: Lam Yik Fei/Bloomberg via Getty Images / Getty Images)

Marvell designs artificial intelligence chips and technology that power data centers, while Lumentum designs lasers and other optical components that use light to transmit data between chips and servers.

Murphy said Lumentum and Marvell, both headquartered in Northern California, share a common vision and detailed how he believes the two technology companies will perform better together than apart.

“Together, because of the additional opportunities we see with each other, there is an opportunity to significantly outperform as a combined company,” the Marvell CEO said.

Murphy, who said the merger has received “tremendous support” from hyperscalers, told FOX Business that he expects “significant” revenue synergies and other benefits once the companies are joined.

AI chip giant Nvidia is a strategic investor in both Lumentum, which has a market value of around $76 billion, and Marvell, valued at roughly $172 billion.

The Marvell-Lumentum deal has drawn “super positive” feedback from Nvidia CEO Jensen Huang, Hurlston said. (Getty)

Hurlston told FOX Business that Murphy discussed the potential Lumentum acquisition with Nvidia CEO Jensen Huang early in the process, adding that Nvidia’s response has been “super positive.”

“Nvidia is invested in Marvell, and Nvidia is invested in Lumentum. We believe we can bring far more product to bear for Nvidia much more quickly through this combination,” Hurlston said.

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