Axcelis and Veeco to Merge in $4.4B Deal to Form Semiconductor Equipment Powerhouse
The all-stock transaction unites two key industry players, aiming to create the fourth-largest U.S. wafer fabrication equipment supplier amid mixed analyst reactions.
Axcelis Technologies (ACLS) and Veeco Instruments (VECO) have announced a definitive agreement to combine in an all-stock merger valued at approximately $4.4 billion, a move set to significantly reshape the semiconductor equipment landscape. The deal signals major consolidation within the industry, creating a more formidable competitor with an expanded portfolio targeting high-growth markets like artificial intelligence and power devices.
Under the terms of the deal, Veeco shareholders will receive 0.3575 shares of Axcelis for each Veeco share they hold. Upon closing, current Axcelis shareholders will own approximately 58% of the combined company, with Veeco shareholders holding the remaining 42%. The new entity, which will be led by Axcelis CEO Dr. Russell Low, is projected to become the .
The strategic rationale for the merger focuses on combining Axcelis's strength in ion implantation with Veeco’s expertise in wet processing and annealing. The companies anticipate achieving within two years and expect the transaction to be accretive to non-GAAP earnings per share within the first year.
The announcement drew a mixed response from Wall Street. An analyst at Benchmark upgraded Axcelis to "Buy," citing the deal's accretive nature and entry into new markets. Conversely, Needham , expressing concerns over potential growth dilution and regulatory hurdles, particularly from China. The market reflected this uncertainty, with Veeco's shares jumping 7.5% while Axcelis shares dipped over 3% following the news. The merger, part of a broader trend of , is expected to close in the second half of 2026, pending shareholder and regulatory approvals.