Axcelis and Veeco to Merge in $4.4B All-Stock Deal
The combination creates a leading U.S. semiconductor equipment supplier with an expanded technology portfolio.
Axcelis Technologies (ACLS) and Veeco Instruments (VECO) have announced a definitive agreement to combine in an all-stock merger of equals, creating a semiconductor equipment powerhouse with a combined enterprise value of approximately $4.4 billion.
The deal aims to forge a more diversified, leading U.S. supplier for the wafer fabrication equipment market. Under the terms of the transaction, Veeco shareholders will receive 0.3575 shares of Axcelis for each Veeco share they own. Upon completion, existing Axcelis shareholders will own approximately 58% of the new entity, with Veeco shareholders holding the remaining 42%.
Leadership for the combined company will be drawn from both organizations. Dr. Russell Low, the current President and CEO of Axcelis, will continue to lead the new company as President and CEO. Veeco's CEO, Dr. Bill Miller, is expected to join the board and chair its Technology Committee. The new entity, which plans to adopt a new name and ticker symbol, will be headquartered in Beverly, Massachusetts.
The strategic rationale for the merger is centered on creating scale and expanding market opportunities. The combination is expected to create the , with a total addressable market exceeding $5 billion. By integrating Axcelis’s ion implantation technology with Veeco’s ion beam and advanced packaging solutions, the company will offer a more comprehensive product portfolio to a broader range of customers.
Financially, the companies project significant benefits. They anticipate achieving within 24 months of closing. The transaction is also structured to be accretive to non-GAAP earnings per share within the first year. The combined company is projected to have pro-forma revenue of $1.7 billion for fiscal year 2024 and more than $900 million in cash upon closing.
The merger is expected to close in the second half of 2026, pending customary closing conditions, including approvals from both companies' shareholders and relevant regulatory bodies. with the goal of accelerating next-generation technology development for advanced chip manufacturing.