Veeco Acquires Applied Epi

Veeco Instruments Inc. of New York, USA has announced plans to acquire longtime
compound semi industry infrastructure player, Applied Epi Inc. of St. Paul Minnesota, USA.
Applied Epi is a privately-held supplier of molecular beam epitaxy (MBE) platforms. Terms of the agreement are that Applied Epi receives
4 million shares of stock Veeco stock and $30 million in cash. Based on last
Thursday’s close, total value of the offer is about $132 million. The transaction
should be completed as early as the end of September. In a call to Applied Epi,
they voiced excitement over their new owners, noting that their sales force dramatically
increases now with Veeco’s 300 sales people. The new infusion of financial support
is expected to help Applied Epi ramp their compounds-on-silicon efforts (those
are Applied Epi platforms that Motorola used in their demonstration of GaAs
epitaxy growth on 12 inch silicon substrates), and they and Veeco spokespeople
report that totally new platforms are in the works, including the development
of MOCVD platforms, though that project was confirmed by Applied as being on
the “back burner.” Currently, MOCVD platforms overwhelmingly outnumber
MBE in popularity for large scale manufacturing, and MOCVD equipment leaders Aixtron and Emcore are expected
to weigh in heavily regarding the reality of whether or not Veeco actually
expands into MOCVD. Press