Marvell Technology (MRVL.US) completes a $115.0 billions acquisition, Lumentum (LITE.US) releases earnings report ahead of schedule: Q1 results beat expectations, next quarter guidance remains strong.

According to Zhihui Finance APP, due to the announcement on the same day that it will be acquired by Marvell Technology (MRVL.US), optical communications device manufacturer Lumentum (LITE.US) has moved up the release of its fiscal year 2027 Q1 financial results from the originally scheduled post-market on November 5 to pre-market on November 2 in the US. The report shows that revenue for the quarter was $1.263 billion, a year-on-year increase of 136.5%, slightly above market expectations of about $1.25 billion; non-GAAP diluted earnings per share were $4.57, higher than the expected approximately $4.2.

Non-GAAP gross margin was 53.2%, and non-GAAP operating margin was 42.3%; GAAP net profit reached $360 million, compared to only $4.2 million in the same period last year.

By product segment, component business revenue was $754 million, up 98.9% year-on-year; system business revenue was $508 million, up 228.8% year-on-year. CEO Michael Helston stated that pump lasers and Optical Circuit Switches (OCS) were the biggest growth drivers of the quarter; the company has secured a second large NPO/CPO (Near-Packaged/Co-Packaged Optics) order, with related purchase commitments exceeding $5 billion, and the visibility of OCS demand has expanded significantly in recent months, making it likely to become a multi-billion-dollar annual revenue stream.

The company expects second-quarter revenue of $1.575 billion to $1.625 billion, up by about $350 million quarter-on-quarter; non-GAAP operating margin of 45% to 46%; and non-GAAP earnings per share of $5.90 to $6.20.

On the same day, Marvell Technology (MRVL.US) announced an all-stock acquisition of Lumentum: Lumentum shareholders will receive 4.5 shares of Marvell common stock for each Lumentum share, equivalent to about $1,132 per share, representing a premium of around 23.9% over the closing price on October 28, before the acquisition rumors, with the deal implying an enterprise value of about $115 billion.

In terms of equity value, this is the largest M&A deal of the year and the largest in global tech industry history (excluding the merger of SpaceX and xAI). Lumentum's laser and optical technologies are used for high-speed transmission of massive data between data centers, providing the underlying support for AI infrastructure; Marvell had previously sourced laser technology from it and earlier this year acquired photonics company Celestial AI.

NVIDIA (NVDA.US) also invested $2 billion to acquire a stake in Lumentum and began photonics cooperation in March this year. Marvell is simultaneously working with Amazon (AMZN.US) cloud services and Microsoft (MSFT.US) to develop custom AI chips, and reached a TPU chip agreement with Google in August.

Data shows that, as of the close on October 30, Lumentum's share price was $840.70, up 128% year-to-date, with a market value of about $76 billion; Marvell is up 131% over the same period, with a market value of $172.2 billion. The deal is expected to close in the first half of 2028, after which the newly merged company’s target market size is expected to expand to $550 billion, with annual cost synergies expected to exceed $1 billion. Marvell’s Chairman and CEO Matt Murphy will lead the new company.