Veeco Instruments Inc., a supplier of advanced thin film etch and deposition process equipment based in Plainview, New York USA, reported the completion of its acquisition of Ultratech, Inc (Ref: Coverage). Ultratech based in San Jose, California provides lithography, laser-processing and inspection systems for the fabrication of semiconductor devices and LEDs.
“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.”
Synergies and Transaction Value
The increased efficiencies and leveraging of the combined businesses are projected to result in $15 million in annualized cost savings within 24 months after closing. With the close of the transaction, Ultratech stockholders will get $21.75 in cash and 0.2675 shares of Veeco common stock for each Ultratech common share outstanding.
The total transaction is valued at about $862.3 million. The value consists of about 7.4 million shares of Veeco common stock and about $628.4 million in cash compensation to former Ultratech shareholders and equity award holders. Due to the acquisition, Ultratech, Inc. stock has ceased trading and is no longer listed on the NASDAQ Stock Market.