Mergers & Acquisitions ·
Marvell agrees to acquire Lumentum in stock deal with 4.5 shares per share exchange ratio
MRVLMarvell Technology, Inc.
Marvell Technology entered into a definitive Agreement and Plan of Merger to acquire Lumentum Holdings Inc. Under the terms, each share of Lumentum common stock will convert into 4.500 shares of Marvell common stock at the effective time of the merger. The transaction requires approval from both companies' boards and shareholders, as well as regulatory clearance under the Hart-Scott-Rodino Act. Marvell has authorized an amendment to its charter to increase the number of authorized shares for the issuance. If the deal terminates due to a superior proposal or board withdrawal, Marvell faces a $5.8 billion termination fee, while Lumentum is subject to a reciprocal $2.9 billion fee and a potential $3.2 billion regulatory termination fee. The combined entity will integrate optical networking and semiconductor technologies.