Recently, US MOCVD equipment manufacturer Veeco announced that it will merge with ion implantation equipment manufacturer Axcelis Technologies Inc. After the merger, it will become the fourth largest wafer manufacturing equipment supplier in the United States. The transaction has been unanimously approved by the boards of directors of both parties and a final agreement has been signed.
Veeco will merge with Axcelis in an all-stock transaction to become a new semiconductor equipment supplier. Based on the stock prices of the two companies as of the end of September and the outstanding debt as of the end of June, the combined company has a market value of approximately US$4.4 billion. After the merger, the company's product portfolio will be further expanded and its business will cover more diversified markets with growth potential.
Under the agreement, Veeco shareholders will exchange 0.3575 Axcelis shares for every 1 Veeco share. Upon completion of the transaction, Axcelis shareholders will hold approximately 58% of the shares, Veeco shareholders will hold approximately 42% (fully diluted). Based on fiscal year 2024, the combined company is expected to achieve revenue of US$1.7 billion, non-GAAP gross profit margin of 44%, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of US$387 million.
The transaction is expected to be completed in the second half of 2026, and still needs to be approved by shareholders of both parties, approved by regulatory agencies and meet other customary closing conditions. After the merger is completed, the company will be headquartered in Beverly, Massachusetts, and the new company will adopt a new company name, stock code and brand image after the transaction is completed.
In the future, after the merger, Veeco and Axcelis will jointly develop high-growth markets such as AI and power devices. The product portfolio will cover a number of core technologies such as ion implantation, laser annealing, ion beam deposition, advanced packaging solutions and MOCVD, and will be supported by a global after-sales service system. In terms of R&D strength, after the merger, the team and technical capabilities will be further strengthened, the scale of R&D will be expanded, and theThe pace of innovation is expected to expand new opportunities in key regions and markets. The complementarity of technologies is expected to bring revenue synergy across product line sales and platform integration.
The parties expect to achieve annualized cost synergies of approximately $35 million within 24 months after completion of the transaction, most of which will be achieved within the first 12 months, and achieve non-GAAP earnings per share growth within the first year. It is worth noting that Veeco’s $230 million in convertible bonds due in 2029 will be assumed by the merged company.
Anna
Anna