Veeco completes Ultratech acquisition to grow LED and semiconductor processing portfolio
Semiconductor process equipment company Veeco Instruments (Plainview, NY; NASDAQ: VECO), completed its acquisition of Ultratech (San Jose, CA), a supplier of lithography, laser-processing, and inspection systems used to manufacture semiconductor devices and LEDs.
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"We are excited to complete this strategic transaction, which establishes Veeco as a leading equipment supplier to the growing Advanced Packaging industry," said John R. Peeler, Veeco's chairman and CEO. "This compelling combination increases our scale while bringing together complementary technologies and a strong talent pool. We believe this is the ideal platform to accelerate growth, enhance profitability and deliver significant value for our customers and shareholders."
The transaction is expected to be immediately accretive on a non-GAAP basis. Veeco is targeting $15 million in annualized run rate synergies within 24 months after closing, to be achieved through increased efficiencies and leveraging the scale of the combined businesses.
With the transaction close, Ultratech shareholders will receive $21.75 in cash and 0.2675 shares of Veeco common stock for each Ultratech common share outstanding. The total transaction is valued at approximately $862.3 million, consisting of approximately 7.4 million shares of Veeco common stock and approximately $628.4 million in cash consideration to former Ultratech shareholders and equity award holders. As a result of the acquisition, Ultratech stock has ceased trading and is no longer listed on the NASDAQ Stock Market.
SOURCE: Veeco; http://www.veeco.com/company/news/veeco-completes-acquisition-of-ultratech
Gail Overton | Senior Editor (2004-2020)
Gail has more than 30 years of engineering, marketing, product management, and editorial experience in the photonics and optical communications industry. Before joining the staff at Laser Focus World in 2004, she held many product management and product marketing roles in the fiber-optics industry, most notably at Hughes (El Segundo, CA), GTE Labs (Waltham, MA), Corning (Corning, NY), Photon Kinetics (Beaverton, OR), and Newport Corporation (Irvine, CA). During her marketing career, Gail published articles in WDM Solutions and Sensors magazine and traveled internationally to conduct product and sales training. Gail received her BS degree in physics, with an emphasis in optics, from San Diego State University in San Diego, CA in May 1986.