Marvell Projects More Than $1 Billion in Annual Lumentum Deal Savings

Marvell expects its planned acquisition of Lumentum to generate more than $1 billion in annual cost synergies. The combined company is expected to target a $550 billion market, and Marvell forecasts the deal will increase non-GAAP earnings per share in the first year after closing. The projections add financial detail to the previously announced acquisition agreement . Under the all-stock terms, Lumentum shareholders would receive 4.5 shares of Marvell common stock for each share they own. After closing, Marvell shareholders are expected to own about 67% of the combined company, with Lumentum shareholders holding about 33%.

Source: TokenPost