Marvell to Buy Lumentum in $115 Billion Stock Deal; Q3 Revenue Tracks Guidance

Marvell Technology (Nasdaq: MRVL) said preliminary revenue for its third quarter of fiscal 2027 was consistent with previously provided guidance, in an 8-K filed Monday, Nov. 2, 2026. The same filing announced a definitive agreement to acquire Lumentum Holdings (Nasdaq: LITE) in an all-stock transaction. The company did not state a dollar revenue figure or an EPS result for the quarter in the filing.

For context, analysts had expected third-quarter revenue of $3.15 billion and adjusted EPS of $1.10, on average. Year-ago revenue was $2.07 billion.

Deal terms

Under the agreement, Lumentum stockholders will receive 4.500 shares of Marvell common stock for each Lumentum share they own. The companies put Lumentum's implied enterprise value at $115 billion, or about $1,132 per share, a premium of approximately 23.9% to each company's unaffected closing share price as of Oct. 28, 2026. Marvell's current stockholders are expected to own about 67% of the combined company on a fully diluted basis, and Lumentum's stockholders about 33%.

Matt Murphy will remain chairman and CEO of the combined company. Three Lumentum directors, including CEO Michael Hurlston, will join Marvell's seven-member board. Both boards have unanimously approved the agreement.

Preliminary revenue and guidance

Marvell maintained the midpoint of its prior third-quarter revenue guidance while narrowing the expected range to plus or minus 2%, from the original plus or minus 5%.

For the fourth quarter ending Jan. 31, 2027, analysts had expected revenue of $3.73 billion and adjusted EPS of $1.36. Full-year fiscal 2027 revenue was expected to reach $12.07 billion, compared with $8.19 billion in fiscal 2026.

Marvell closed at $196.40 on Friday, Oct. 30, 2026, the last close before the filing, giving it a market value of about $172.22 billion.

Synergies and timing

The companies expect the transaction to be accretive to Marvell's non-GAAP earnings per share in the first year after closing, and to provide line of sight to more than $1 billion in annual run-rate cost synergies. They also cite an expanded total addressable market of $550 billion. The deal is expected to close in the first half of calendar 2028, subject to stockholder and regulatory approvals and other customary conditions.