Axcelis Stockholders Approve Merger With Veeco To Create Semiconductor Equipment Company

• The companies said the merger completion would remain subject to other customary closing conditions, including the final regulatory approval from China’s State Administration.
• The deal was announced in October 2025, for the companies to combine in an all-stock merger to create a semiconductor equipment company with an enterprise value of about $4.4 billion. 
• The merged entity is expected to increase its total addressable market to over $5 billion, with greater exposure to artificial intelligence and the corresponding demand for power solutions.

Axcelis Technologies, Inc. (ACLS) and Veeco Instruments Inc. (VECO) announced on Friday that the companies’ stockholders have approved a merger deal.

The merger deal between the two companies is expected to close in the second half of 2026.

The companies said the merger completion would remain subject to other customary closing conditions, including the final regulatory approval from China’s State Administration.

Shares of ACLS closed up 5.63% on Friday, and continued to rise by over 0.88% after-hours.

Meanwhile, shares of VECO ended the session almost 6% higher, and declined about 0.26% after market close.

Deal Contours

In October 2025, the companies announced a definitive agreement to combine in an all-stock merger that would create a semiconductor equipment company with an enterprise value of about $4.4 billion.

Under the terms of the deal, Veeco shareholders are expected to receive 0.3575 Axcelis shares for each share they own. After the deal completion, Axcelis shareholders are expected to own about 58%, and Veeco shareholders are expected to own approximately 42% of the combined company.

Veeco's $230 million in outstanding 2029 convertible bonds will be assumed by the combined company in connection with the transaction, the companies said.

Deal Rationale

The companies said that the merged entity would result in a leading semiconductor equipment company with an attractive operating profile, a robust R&D innovation engine, and an expanded product portfolio with opportunities for cost and revenue synergies.

The merged entity is expected to increase its total addressable market to over $5 billion, with greater exposure to artificial intelligence and the corresponding demand for power solutions. The deal is also expected to result in an annual run-rate cost synergies of $35 million within 24 months following closing, with the majority likely to be achieved within the first 12 months.

The companies also noted that on a pro-forma basis for FY24, the combined company generated revenue of $1.7 billion, non-GAAP (Generally Accepted Accounting Principles) gross margin of 44%, and adjusted core profit of $387 million, as of October 2025.

"This merger capitalizes on the core competencies of both Veeco and Axcelis to address our customers' critical needs," Dr. Bill MiIler, Chief Executive Officer of Veeco, said at the time.

"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," MiIler added.

The combined company is also expected to execute a share repurchase program after the deal closes.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around ACLS shares remained in the ‘neutral’ territory over the past 24 hours amid ‘normal’ message volumes.

Meanwhile, retail sentiment around VECO shares were in the ‘bearish’ territory over the past 24 hours amid ‘normal’ message volumes.

ACLS shares have gained more than 31% in the past year, while VECO shares have risen over 21% in the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also Read: SMX Shares Rallied Over 129% Today — Here’s Why
 

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