IT News on November 2nd: Marvell Technology (Marvell) and optical communication equipment manufacturer Lumentum announced today that they have reached a final acquisition agreement. Marvell will acquire Lumentum through a full-stock transaction.
According to the agreement, each shareholder of Lumentum will receive 4.5 shares of Myriel common stock for every 1 share held. Upon completion of the transaction, Myriel's current shareholders will hold approximately 67% of the shares in the merged company, while the shareholders of Lumentum will hold about 33%. The transaction is expected to be completed in the first half of 2028 and still requires approval from both parties' shareholders and regulatory authorities.
Mayerl expects that this merger will achieve cost synergies of over $1 billion per year and will increase earnings per share for non-GAAP in the first year after the transaction is completed. The target market size of the combined company is expected to expand to $550 billion.
Mewel plans to integrate the technologies of both parties in the field of AI infrastructure connectivity with Lumentum. Mewel possesses expertise in electrical and optical interconnects, network switching, custom XPU, and advanced semiconductor technology, while Lumentum has capabilities in high-performance lasers, optical transceivers, optical path switching ( OCS ), and compound semiconductor manufacturing. Following the merger, the company will cover areas such as CMOS, silicon photonics, compound semiconductors, advanced packaging, and manufacturing, providing optical interconnect solutions ranging from distributed data centers to advanced semiconductor packaging.
Lumentum also announced its financial results for the first quarter of fiscal year 2027 today. As of September 26, the company's revenue was $1.263 billion, a year-on-year increase of 136.5%; net profit was $360 million, compared to $4.2 million in the same period last year. Non-GAAP net profit was $461 million, with an diluted earnings per share of $4.57.
The company expects that revenue for the second fiscal quarter will reach $1.575 billion to $1.625 billion, with earnings per share after dilution (excluding GAAP) ranging from $5.90 to $6.20. The company stated that pump lasers and optical switches (OCS) were the main drivers of performance growth this quarter, and they have secured a second large NPO / CPO order, with related procurement commitments exceeding $5 billion.
Mayer announced its preliminary revenue forecast for the third quarter of fiscal year 2027, expecting revenue to meet the mid-range of the previously given guidance, while also narrowing the revenue forecast range to a fluctuation of plus or minus 2%, compared to the previous range of plus or minus 5%. The company stated that the final results will still need to go through the quarterly closing procedures and audit review.
