Axcelis and Veeco to merge in all-stock deal worth $4.4 billion

BEVERLY, Mass./PLAINVIEW, N.Y. - Semiconductor equipment manufacturers Axcelis Technologies Inc (NASDAQ:ACLS), currently valued at $3.07 billion and maintaining a "GREAT" financial health score according to InvestingPro, and Veeco Instruments Inc (NASDAQ:VECO) announced Wednesday they have entered into a definitive agreement to combine in an all-stock merger valued at approximately $4.4 billion.

Under the terms of the agreement, Veeco shareholders will receive 0.3575 Axcelis shares for each Veeco share they own. Upon completion, Axcelis shareholders will own approximately 58% of the combined company, with Veeco shareholders owning the remaining 42%.

The transaction, unanimously approved by both companies’ boards of directors, is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.

The combined entity will become the fourth largest U.S. wafer fabrication equipment supplier by revenue, with a pro-forma 2024 revenue of $1.7 billion, non-GAAP gross margin of 44%, and adjusted EBITDA of $387 million, according to the companies’ press release statement. Notably, Axcelis currently maintains a healthy gross margin of 44.9% and generated $169.77 million in EBITDA over the last twelve months. For deeper insights into Axcelis’s financial metrics and growth potential, InvestingPro subscribers have access to over 30 additional key performance indicators and expert analysis.

Dr. Russell Low, President and CEO of Axcelis, will lead the combined company, while Veeco’s CEO Dr. Bill Miller will serve on the board and chair its Technology Committee. The company will be headquartered in Beverly, Massachusetts, and will adopt a new name and ticker symbol following the close.

The companies expect to achieve annual run-rate cost synergies of $35 million within 24 months of closing, with the majority realized within the first year. The merger is anticipated to be accretive to non-GAAP earnings per share within the first 12 months post-closing.

The combined company will offer a portfolio spanning ion implantation, laser annealing, ion beam deposition, advanced packaging solutions and MOCVD, expanding its total addressable market to over $5 billion.

Upon closing, the combined company is expected to have approximately $900 million in cash and plans to implement a share repurchase program. Veeco’s $230 million in outstanding 2029 convertible bonds will be assumed by the combined company. Axcelis brings strong financial fundamentals to the merger, with a robust current ratio of 6.01 and more cash than debt on its balance sheet. Access the complete Pro Research Report and detailed financial analysis through InvestingPro, which covers over 1,400 US stocks with comprehensive insights and expert commentary.

In other recent news, Axcelis Technologies reported strong financial results for the second quarter of 2025, significantly exceeding market expectations. The company posted earnings per share of $1.13, surpassing the forecasted $0.71, and revenue reached $195 million, outpacing the expected $185.94 million. In addition to its financial performance, Axcelis announced a Joint Development Program with GE Aerospace to develop production-ready 6.5 to 10kV superjunction power devices, utilizing Axcelis’ Purion XEmax high energy implanter. Analyst firm DA Davidson raised its price target for Axcelis Technologies from $75 to $90, maintaining a Buy rating, following the company’s impressive quarterly results and positive outlook. These developments reflect a period of growth and strategic collaboration for Axcelis Technologies.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.