Veeco Instruments Inc. of Plainview, New York USA has definitively agreed to acquire a maker of lithography equipment as well as laser processing and inspection systems Ultratech, Inc. The Boards of Directors of both companies have unanimously approved the transaction.
The implied total value of the transaction is about $815 million. For each $21.75 share of Ultratech that Veeco purchases, Ultratech shareholders will get 0.2675 shares of Veeco stock. At the close of the transaction, Ultratech shareholders are projected to own about 15 percent of the combined company.
Ultratech of San Jose, California is a supplier of lithography products for advanced packaging applications and LEDs and is a pioneer for laser spike anneal technology used to produce semiconductor devices. In addition, the company provides wafer inspection solutions that use its proprietary coherent gradient sensing (CGS) technology. These wafer inspection solutions address a wide variety of semiconductor applications.
“The strategic combination will establish Veeco as a leading equipment supplier in the high-growth Advanced Packaging industry. Ultratech’sleadership in lithography together with Veeco’s Precision Surface Processing (PSP) solutions form a strong technology portfolio to address the most critical Advanced Packaging applications.“ said John R. Peeler, Veeco’s chairman, and CEO.
The combined company is expected to have an efficient balance sheet, benefiting from the deployment of excess cash. The transaction, which is subject to approval by shareholders, regulatory approvals in the U.S., and other customary closing conditions, is expected to close in the second calendar quarter of 2017.