Axcelis and Veeco to Merge in $4.4 Billion All-Stock Deal
The combination creates the 4th largest US wafer fabrication equipment supplier, targeting an expanded $5 billion market.
Axcelis Technologies and Veeco Instruments have announced a definitive agreement to combine in an all-stock merger, creating a semiconductor equipment powerhouse with a combined enterprise value of approximately $4.4 billion. The deal unites two complementary players in the wafer fabrication space, forming what will be the fourth-largest U.S. supplier in the sector by revenue.
The merger is structured as an all-stock transaction where Veeco shareholders will receive 0.3575 Axcelis shares for each Veeco share they hold. Upon closing, Axcelis shareholders will own approximately 58% of the new entity, with Veeco shareholders holding the remaining 42%. The combined company is expected to have a more diversified product portfolio and an expanded total addressable market of over $5 billion, according to the .
Leadership from both companies touted the strategic benefits of the combination. "This combination marks a transformational milestone for both Axcelis and Veeco," said Dr. Russell Low, President and CEO of Axcelis, who will lead the combined company. Veeco's CEO, Dr. Bill Miller, added that the merger "capitalizes on the core competencies of both Veeco and Axcelis to address our customers' critical needs."
Financially, the deal is projected to deliver significant value. The companies anticipate achieving $35 million in annual run-rate cost synergies within 24 months of closing and expect the transaction to be accretive to non-GAAP earnings per share within the first year. The new entity, which will be headquartered in Beverly, Massachusetts, and receive a new name and ticker symbol, generated a pro-forma revenue of $1.7 billion in fiscal year 2024, as . The transaction, unanimously approved by both boards, is expected to close in the second half of 2026, pending shareholder and regulatory approvals.