Semiconductor firm Marvell Technology has made progress in talks to purchase Lumentum Holdings, a maker of optical components for data centers, as per sources close to the situation who shared insights with Bloomberg.
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The sources indicated that an announcement about the deal might occur as soon as next week.The agency reports that Lumentum has a market value of around $83 billion, whereas Marvell is estimated to be worth about $221 billion.
The possible purchase of Lumentum might be one of the ten largest transactions in the history of the technology and telecommunications industries, the agency points out.
By acquiring Lumentum, Marvell would gain direct access to technologies and production capabilities that are increasingly becoming “bottlenecks” in the deployment of infrastructure for artificial intelligence, according to Bloomberg.
The agency highlights that Lumentum produces lasers and various optical components intended for transmitting large amounts of data rapidly—an essential feature for AI—and that the current demand for these items significantly exceeds their supply.
This month, Lumentum CEO Michael Hurlston mentioned that the company’s optical components will be fully booked until early 2029, and they will not be able to fulfill around 70% of the demand for specific product lines in the coming year.
source: bloomberg.com
