Axcelis and Veeco agree to $4.4 billion all-stock merger
Axcelis Technologies and Veeco Instruments have entered into a definitive agreement to merge in an all-stock transaction that values the combined company at approximately USD 4.4 billion. The deal will create one of the largest US suppliers of semiconductor manufacturing equipment.
Under the terms of the agreement, Veeco shareholders will receive 0.3575 Axcelis shares for each Veeco share. Upon closing, Axcelis shareholders are expected to own about 58% and Veeco shareholders about 42% of the combined company. Boards of directors at both firms approved the merger unanimously.
The combined company, to be headquartered in Beverly, Massachusetts, reported pro-forma 2024 revenue of USD 1.7 billion, with a non-GAAP gross margin of 44% and adjusted EBITDA of USD 87 million.
Russell Low, president and CEO of Axcelis, will serve as CEO of the combined company. Veeco CEO Bill Miller will join the board and chair its Technology Committee. Thomas St. Dennis, a director of both companies, will chair the board.
"This combination marks a transformational milestone for both Axcelis and Veeco, establishing a new leader in semiconductor capital equipment with complementary technologies, a diversified portfolio and an expanded addressable market opportunity," says Dr. Russell Low, in a press release.
The merger will create the fourth-largest US wafer fabrication equipment supplier by revenue, with an expanded portfolio including ion implantation, laser annealing, ion beam deposition, advanced packaging solutions and MOCVD. The companies said the deal broadens their total addressable market to over USD 5 billion, driven by demand for artificial intelligence and advanced power solutions.
"This merger capitalises on the core competencies of both Veeco and Axcelis to address our customers' critical needs," adds Dr. Bill MiIler, Chief Executive Officer of Veeco. "With increased R&D scale, the combination of these two exceptional businesses will accelerate our ability to solve material challenges, enable advanced chip manufacturing and build an even stronger company that can deliver superior value for all stakeholders."
The transaction is expected to close in the second half of 2026, subject to shareholder and regulatory approvals.