Key Highlights

  • Shares are trading down 17.00% at $697.75 versus a prior close of $840.70.
  • At Marvell's current price, the 4.5 ratio implies roughly $768 per Lumentum share.
  • Fiscal first-quarter Revenue rose 136% to $1.26 billion.

Lumentum (NASDAQ:LITE) shares are trading down 17.00% at $697.75 even though Marvell Technology (NASDAQ:MRVL) agreed to acquire the company in an all-stock deal with an implied Enterprise value of $115 billion. The stock remains far above its 52-week low of $184.20 but below the 52-week high of $1,143.00.

Lumentum, based in San Jose, California, makes high-performance lasers, optical transceivers, optical circuit switches and related components for AI data centers, telecom networks and industrial uses. It reported results for its fiscal first quarter of 2027 alongside the announcement.

Offer Value Slides With Marvell's Share Price

Lumentum holders will receive 4.500 Marvell shares per share, which the companies valued at about $1,132 per share at announcement, a premium of approximately 23.9% to the October 28 unaffected close. With Marvell shares trading down 13.09% at $170.70, the exchange ratio implies roughly $768 per Lumentum share, below the headline figure but above Lumentum's current price.

Lumentum holders would own about 33% of the combined company, and CEO Michael Hurlston and two other Lumentum directors will join Marvell's board.

Fiscal First-Quarter Results Beat Estimates but Take a Back Seat

Lumentum reported Earnings Per Share of $4.57 versus market estimates of $4.22, and revenue of $1.26 billion, up 136% from a year earlier. The company guided second-quarter revenue to a range of $1.575 billion to $1.625 billion, well above consensus, and cited a second win worth more than $5 billion in near-packaged and co-packaged optics.

Marvell has said the deal expands the combined addressable market to $550 billion and offers more than $1 billion in annual run-rate cost synergies.

First-Half 2028 Close Keeps Focus on Marvell's Stock Price

The deal needs approval from both companies' stockholders and regulators and is expected to close in the first half of 2028. Until then, Lumentum's share price is tied to movements in Marvell's, which has fallen sharply since talks surfaced.