Veeco Instruments Inc. and Axcelis Technologies Inc. have entered into a merger agreement that when combined will create the fourth largest U.S. wafer fabrication equipment supplier.
Under the deal, the merged semiconductor equipment company will be able to increase market opportunities, expanding its total addressable market to more than $5 billion. It will also diversify its portfolio into:
- Ion implantation
- Laser annealing
- Ion beam deposition
- Advanced packaging solutions
- MOCVD
The combined company will include expanded R&D teams, larger capacity and new opportunities across geographies and end markets, the companies said.
The deal
Under the agreement, Axcelis shareholders are expected to own about 58% of the new companies with Veeco shareholders owning about 42%. The deal is expected to be approved by the boards of directors of both companies.
Together the combined company is expected to have an enterprise value of approximately $4.4 billion, the companies said.
"This merger capitalizes on the core competencies of both Veeco and Axcelis to address our customers' critical needs," said Dr. Bill MiIler, CEO of Veeco. "With increased R&D scale, the combination of these two exceptional businesses will accelerate our ability to solve material challenges, enable advanced chip manufacturing and build an even stronger company that can deliver superior value for all stakeholders."
