Axcelis and Veeco Ink $4.4B Merger to Form Chip Equipment Giant
All-stock deal aims to create a diversified leader in the semiconductor sector, targeting high-growth AI and power device markets.
Semiconductor equipment manufacturers Axcelis Technologies (ACLS) and Veeco Instruments (VECO) have announced a definitive agreement for an all-stock merger of equals. The transaction, , is set to create a more formidable competitor in the global chip-making supply chain.
The deal aims to combine the companies' complementary technologies to better serve high-growth markets, including artificial intelligence and advanced power solutions. Under the terms, Veeco shareholders will receive 0.3575 shares of Axcelis for each Veeco share held. Upon completion, Axcelis shareholders will own approximately 58% of the combined entity, with Veeco shareholders holding the remaining 42%.
Market reaction to the announcement was mixed. Shares of Veeco Instruments jumped over 7% in early trading as investors reacted positively to the terms. In contrast, Axcelis Technologies saw its stock decline by more than 10%, reflecting shareholder concerns about dilution and the complexities of integration. The companies anticipate achieving within two years of the merger's closing.
The newly formed company will be led by Axcelis's current CEO, Russell Low. Analysts see the strategic move as a way to build a more diversified portfolio and expand the company's total addressable market to over $5 billion. However, the merger is still , including in the U.S. and China, with an expected closing in the second half of 2026.