Sources: Marvell is in advanced talks to buy data center optics maker Lumentum, whose market value is ~$83B; the deal could be announced as soon as next week
Marvell Technology Inc. is in advanced talks to buy data center optics maker Lumentum Holdings Inc., according to people familiar with the matter …
Context & Ripple Effects
Marvell has repeatedly used acquisitions to broaden its networking position, including the $10B Inphi acquisition for cloud and 5G in 2020 and the $1.1B Innovium deal in 2021. A reported Lumentum transaction would extend that acquisition-led playbook from networking chips toward data-center optics.
The report was picked up across financial and technology outlets, putting a possible sale of Lumentum at the center of investor attention; the transaction itself remains unconfirmed.
First-order effects
- If the parties reach an agreement, Marvell would add Lumentum's data-center optics business to its portfolio, while Lumentum shareholders would receive a potential exit at the reported transaction valuation.
Second-order effects
- A combined Marvell-Lumentum would link Marvell's cloud and networking-chip assets with optics, increasing pressure on standalone component suppliers to defend their place in data-center deployments.
Third-order effects
- If Marvell continues to buy adjacent specialists, data-center infrastructure purchasing may increasingly favor suppliers that combine electronic networking components with optical capabilities rather than narrowly focused vendors.
The trend: Data-center infrastructure vendors are pursuing adjacent component capabilities through acquisitions to capture more of the networking-and-optics stack.