Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Stock

Veeco Instruments surge 7% after $4.4B merger deal with Axcelis Technologies

admin by admin
October 1, 2025
in Stock
0
Veeco Instruments surge 7% after $4.4B merger deal with Axcelis Technologies
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

Shares of semiconductor equipment makers Axcelis Technologies and Veeco Instruments moved in opposite directions on Wednesday after the companies announced plans to merge in an all-stock transaction valued at $4.4 billion.

The deal, which is expected to close in the second half of 2026, will create the fourth-largest US wafer fabrication equipment company with a total addressable market of more than $5 billion.

Market reaction and transaction details

In early afternoon trading, Veeco stock jumped 7.5% to $32.72 while Axcelis shares fell 3.4% to $94.27.

The contrasting moves highlight the market’s mixed reaction to the proposed deal.

Under the terms of the agreement, Veeco shareholders will receive 0.3575 Axcelis shares for each Veeco share they own.

Upon completion, Axcelis investors will control 58% of the combined entity, with Veeco shareholders owning the remaining 42%.

The merger is structured as an all-stock transaction, and the combined enterprise value is pegged at $4.4 billion based on the most recent closing prices of both companies.

As of the last close, Axcelis had a market capitalization of $3.07 billion, while Veeco was valued at $1.83 billion, according to LSEG data.

Year-to-date, Axcelis shares had gained nearly 34% while Veeco shares were up about 21%.

Strategic rationale and growth prospects

Executives said the combination will expand product offerings, increase profitability, and add scale that strengthens Axcelis’s competitive position.

The companies expect the merger to generate $35 million in annual cost savings within two years of closing.

DA Davidson analyst Thomas Diffely noted in a report that the deal increases the combined company’s exposure to several high-growth markets, including artificial intelligence, power devices, and electrification.

He added that the move expands the addressable market to approximately $5 billion and positions Axcelis as both a stronger competitor and a potentially attractive target for larger industry players such as Lam Research.

Russell Low, Chief Executive Officer of Axcelis, and James Coogan, the company’s Chief Financial Officer, will retain their roles following the merger.

The companies emphasized that the integration will create a more efficient business with broader capabilities across the semiconductor equipment sector.

Industry context and outlook

The merger comes at a time of heightened demand for semiconductor equipment, driven by the growth of AI applications, electrification trends, and the expansion of power devices.

The semiconductor industry has been consolidating in recent years as firms seek greater scale to weather cyclical downturns and capitalize on structural growth opportunities.

While management remains optimistic about the long-term benefits, near-term investor reaction has been cautious.

Axcelis shareholders appear concerned about dilution and integration risks, even as Veeco investors welcomed the premium embedded in the exchange ratio.

If approved by regulators and shareholders, the transaction will reshape the US semiconductor equipment landscape, with the combined company emerging as a top-tier competitor.

Despite short-term market volatility, both firms see the merger as a strategic step to accelerate growth, capture efficiencies, and position themselves for rising demand in key technology markets.

The post Veeco Instruments surge 7% after $4.4B merger deal with Axcelis Technologies appeared first on Invezz


Previous Post

Intel shares surge 6% on reports of adding AMD as foundry customer

Next Post

Evening digest: Meta to mine AI conversations, Europe economic data, BTC rebounds

Next Post
Evening digest: Meta to mine AI conversations, Europe economic data, BTC rebounds

Evening digest: Meta to mine AI conversations, Europe economic data, BTC rebounds

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
How Companies Use Derivatives To Hedge Risk

How Companies Use Derivatives To Hedge Risk

February 19, 2025
KFC moves U.S. headquarters from Kentucky to Texas

KFC moves U.S. headquarters from Kentucky to Texas

February 19, 2025
Synthetic: Definition in Finance, Types of Assets

Synthetic: Definition in Finance, Types of Assets

February 19, 2025
Why Tesla stock is crashing over 4% on Thursday

Why Tesla stock is crashing over 4% on Thursday

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

0
Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

0
Why Tesla stock is crashing over 4% on Thursday

Why Tesla stock is crashing over 4% on Thursday

October 30, 2025
What Citibank’s rate cut tells us about the next big move in the economy

What Citibank’s rate cut tells us about the next big move in the economy

October 30, 2025
Chipotle stock plunge 15% after sales forecast cut amid industry headwinds

Chipotle stock plunge 15% after sales forecast cut amid industry headwinds

October 30, 2025
Why CAVA stock is trading near 52-week low: should you buy the dip?

Why CAVA stock is trading near 52-week low: should you buy the dip?

October 30, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    Why Tesla stock is crashing over 4% on Thursday

    Why Tesla stock is crashing over 4% on Thursday

    October 30, 2025
    What Citibank’s rate cut tells us about the next big move in the economy

    What Citibank’s rate cut tells us about the next big move in the economy

    October 30, 2025
    Chipotle stock plunge 15% after sales forecast cut amid industry headwinds

    Chipotle stock plunge 15% after sales forecast cut amid industry headwinds

    October 30, 2025
    Why CAVA stock is trading near 52-week low: should you buy the dip?

    Why CAVA stock is trading near 52-week low: should you buy the dip?

    October 30, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved