Axcelis and Veeco to Merge in $4.4 Billion All-Stock Deal
The combination aims to create a diversified semiconductor equipment leader with a pro-forma revenue of $1.7 billion.
Axcelis Technologies and Veeco Instruments are set to combine in an all-stock merger, creating a semiconductor equipment powerhouse with an estimated enterprise value of $4.4 billion. The announcement sent mixed signals across the market, with Veeco Instruments (VECO) shares seeing a modest rise while Axcelis (ACLS) shares experienced a significant drop of over 7% in subsequent trading.
The , will see Veeco shareholders receive 0.3575 shares of Axcelis for each share they own. Upon closing, Axcelis shareholders will hold approximately 58% of the new entity, with Veeco shareholders owning the remaining 42%. The combined company will be led by Axcelis's current CEO, Dr. Russell Low, and will be headquartered in Beverly, Massachusetts.
Strategically, the merger is designed to significantly diversify the company's technology portfolio, expanding its total addressable market to over $5 billion. The combination brings together Axcelis's strength in ion implantation with Veeco's expertise in laser annealing, ion beam deposition, and advanced packaging solutions. Leadership from both firms highlighted the potential for accelerated innovation and a broader product lineup to better serve a global customer base.
The projects a pro-forma revenue of $1.7 billion for 2024. The companies are targeting $35 million in annual run-rate cost synergies within 24 months of closing and expect the deal to be accretive to non-GAAP earnings per share within the first year. The new company will also command a strong balance sheet with over $900 million in cash.
While the strategic rationale is clear, the initial , reflecting the complexities of the integration ahead. The transaction is expected to close in the second half of 2026, pending customary closing conditions, including approvals from shareholders and regulators in the United States and China.