Marvell (MRVL.US) announced the acquisition of optical component maker Lumentum (LITE.US) at an enterprise value of USD115 billion, meaning the merger of two companies backed by NVIDIA (NVDA.US). Marvell CEO Matt Murphy said he will continue to serve as chairman and CEO of the combined company, adding that the transaction will benefit NVIDIA.

Marvell shares closed down 12.72% overnight at USD171.41. Some analysts questioned whether the acquisition price was too high, as the deal exceeds more than half of Marvell's market capitalization. Lumentum shares also closed down 18.59% at USD684.4.

Lumentum shareholders will receive 4.5 shares of Marvell for each share held, equivalent to USD1,132 per share and representing a premium of 23.9%. The transaction is expected to be completed in 1H28, after which Lumentum shareholders will own a 33% stake in the combined company.
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