US Stock Market Move | $115 billion acquisition finalized! Lumentum (LITE.US) falls nearly 6% in premarket trading

On Monday, Marvell Technology, Inc. (MRVL.US) fell more than 2% in premarket trading, while Lumentum (LITE.US) fell nearly 6% in premarket trading. On the news front, on November 2 local time, Marvell Technology, Inc. announced that it had reached a definitive agreement to acquire optical communications component manufacturer Lumentum through an all-stock transaction, with an implied enterprise value of approximately US$115 billion. Under the agreement, each Lumentum shareholder will receive 4.5 shares of Marvell stock for each share held. Based on the closing prices of the two companies on October 28, before deal speculation emerged, the transaction represents a premium of approximately 23.9%. After the transaction is completed, existing Marvell shareholders are expected to hold approximately 67% of the combined company, while Lumentum shareholders will hold approximately 33%. Marvell Chief Executive Officer Matt Murphy will continue to lead the combined company. The transaction is expected to close in the first half of 2028 and remains subject to approval by both companies' shareholders and regulatory authorities. Marvell expects the merger to achieve more than US$1 billion in annual cost synergies and to be accretive to non-GAAP earnings per share in the first year after the transaction closes. The combined company's target market is expected to expand to US$550 billion.