Axcelis Shares Drop on $4.4B All-Stock Merger with Veeco
The deal will create a combined semiconductor equipment firm, but investors react cautiously to the terms, sending Axcelis stock down 3.4%.
Axcelis Technologies (ACLS) saw its shares fall 3.4% to $94.27 after announcing a definitive agreement to merge with Veeco Instruments (VECO) in an all-stock transaction. The deal values the combined entity at approximately $4.4 billion and aims to create a powerhouse in the semiconductor equipment industry.
Under the terms of the merger, which was , Veeco shareholders will receive 0.3575 Axcelis shares for each Veeco share they own. Upon completion, Axcelis shareholders will own approximately 58% of the new company, with Veeco shareholders holding the remaining 42%.
The market's reaction was mixed. While Axcelis shares took a hit, Veeco's stock surged over 7% on the news, reflecting the premium embedded in the exchange ratio. The combined company is projected to have pro-forma 2024 revenue of $1.7 billion and an adjusted EBITDA of $387 million.
Leaders from both companies touted the strategic benefits of the merger. "This combination creates a premier, diversified semiconductor equipment company with a broader portfolio of differentiated solutions," said Russell Low, CEO of Axcelis, who will lead the new firm. The merger is expected to expand the company's total addressable market to over $5 billion, driven by high-growth sectors like artificial intelligence and advanced power solutions. The companies anticipate achieving within two years.
The new, yet-to-be-named company will be headquartered in Beverly, Massachusetts. Veeco CEO Bill Miller will join the board and chair its Technology Committee. The transaction is expected to close in the second half of 2026, pending .