Veeco and Axcelis to Merge in $4.4 Billion All-Stock Deal
The transaction aims to create a semiconductor equipment powerhouse, but investors react cautiously to the news.
Veeco Instruments and Axcelis Technologies have announced their intention to merge in a . The move is set to create a new giant in the semiconductor capital equipment sector, combining the strengths of both companies to foster innovation and expand market reach.
The proposed merger will see Veeco shareholders receive 0.3575 shares of Axcelis for each share of Veeco they own. Upon completion, Axcelis shareholders will own approximately 58% of the combined company, with Veeco shareholders holding the remaining 42%. The new entity will be led by Axcelis's current CEO, Dr. Russell Low, and will be headquartered in Beverly, Massachusetts.
The strategic rationale behind the merger is to create a more diversified and competitive player in the semiconductor industry. The combined company will have a broader product portfolio and an expanded total addressable market of over $5 billion. The companies also anticipate achieving within two years of the merger's closing.
Despite the strategic vision, the market's initial reaction has been mixed. Following the announcement, , while Veeco's shares saw a slight dip. This suggests some investor skepticism regarding the deal's execution and potential challenges ahead. The merger is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.