The deal carries an implied enterprise value of $115 billion for Lumentum, approximately $1,132 per share and a premium of about 23.9% over each company's unaffected closing price on October 28, 2026, the last trading day before market speculation about a potential transaction began. Once the deal closes, existing Marvell shareholders will own roughly 67% of the combined company on a fully diluted basis, with Lumentum holders holding about 33%.

The companies framed the deal around the shift in AI infrastructure from copper-based connections towards optical technologies, arguing that growing bandwidth demands and the physical limits of copper are pushing the industry towards tightly integrated optical solutions that need closer co-design of electrical and optical engineering. As this is a company announcement rather than independent reporting, that strategic rationale is the buyers' own assessment.