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Veeco to acquire Ultratech for $815 million

The companies have signed a definitive agreement under which Veeco Instruments Inc. will acquire Ultratech, Inc. Both companies boards of directors have unanimously approved the transaction.
Ultratech shareholders will receive USD 21.75 per share in cash and 0.2675 of a share of Veeco common stock for each Ultratech common share outstanding. The total transaction value is approximately USD 815 million.

Ultratech is a supplier of lithography products for Advanced Packaging applications and for LEDs as well as laser spike anneal technology used for production of semiconductor devices. In addition, the company offers wafer inspection solutions leveraging its coherent gradient sensing (CGS) technology.

“The strategic combination will establish Veeco as a leading equipment supplier in the high growth Advanced Packaging industry. Ultratech’s leadership in lithography together with Veeco’s Precision Surface Processing (PSP) solutions form a strong technology portfolio to address the most critical Advanced Packaging applications. We believe our complementary end market exposure and customer relationships will create the ideal platform to accelerate growth,” said John R. Peeler, Veeco’s Chairman and Chief Executive Officer. “Ultratech is a great fit with our strategy to profitably grow our business and diversify our revenue. We expect this transaction to be immediately accretive to adjusted EBITDA and non-GAAP EPS.”

Ultratech Chairman and Chief Executive Officer, Arthur W. Zafiropoulo said, “Both companies have a strong heritage of developing innovative and cutting-edge technologies. The combined company will create a formidable team to execute against growth opportunities and deliver significant value to customers and shareholders."

Veeco expects to realize approximately USD 15 million in annualised run rate synergies within 24 months after closing, to be achieved through increased efficiencies and leveraging the scale of the combined businesses.

The transaction is expected to close in the second calendar quarter of 2017, subject to approval by Ultratech shareholders, regulatory approvals in the US and other closing conditions.

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March 25 2017 3:01 PM V8.0.2-2