On October 1, 2025 (U.S. Eastern Time), Axcelis Technologies Inc. and Veeco Instruments Inc. announced that they have entered into a definitive all-stock merger agreement, in a deal that will create the fourth largest U.S. wafer fabrication equipment supplier by revenue. Based on the companies' closing share prices as of September 30, 2025, and outstanding debt as of June 30, 2025, the combined entity is expected to have an enterprise value of about $4.4 billion.

Under the terms, Veeco shareholders will receive 0.3575 shares of Axcelis for each Veeco share. Upon completion, Axcelis shareholders are expected to own about 58% of the combined company, while Veeco shareholders will hold about 42%. The boards of directors of both companies have unanimously approved the merger, which is expected to close in the second half of 2026, pending shareholder and regulatory approvals.

On a pro-forma basis for fiscal 2024, the combined firm generated $1.7 billion in revenue, a 44% non-GAAP gross margin, and adjusted EBITDA of $387 million. The merger is expected to deliver annual cost synergies of $35 million within two years, most of which should be realized in the first 12 months. The companies also expect accretion to non-GAAP earnings per share in the first year post-closing.

The new entity will have a diversified portfolio spanning ion implantation, laser annealing, ion beam deposition, advanced packaging solutions and MOCVD, supported by a global aftermarket services business. Executives said the merger will broaden the total addressable market to over $5 billion, driven by growth in areas such as artificial intelligence and power semiconductors.

"This combination marks a transformational milestone for both Axcelis and Veeco, establishing a new leader in semiconductor capital equipment with complementary technologies and an expanded market opportunity," said Dr. Russell Low, president and CEO of Axcelis.

Veeco CEO Dr. Bill Miller added, "With increased R&D scale, the combination of these two businesses will accelerate our ability to solve material challenges, enable advanced chip manufacturing, and create a stronger company for all stakeholders."

The combined company will be headquartered in Beverly, Massachusetts, and will adopt a new name, ticker symbol, and brand upon closing. Its board will consist of 11 members: six from Axcelis, including Dr. Low, and four from Veeco, including Dr. Miller, who will chair the technology committee. Thomas St. Dennis, currently on both boards, will serve as chairperson.

About Axcelis

Axcelis (Nasdaq: ACLS), headquartered in Beverly, Mass., has been providing innovative, high-productivity solutions for the semiconductor industry for over 45 years. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation systems, one of the most critical and enabling steps in the IC manufacturing process. Learn more about Axcelis at www.axcelis.com.

About Veeco

Veeco (NASDAQ: VECO) is an innovative manufacturer of semiconductor process equipment. Our laser annealing, ion beam, metal organic chemical vapor deposition (MOCVD), single wafer etch & clean and lithography technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets we serve.