Axcelis Technologies and Veeco Instruments have obtained stockholder approval for their $4.4bn merger to form a major player in the semiconductor equipment sector. The all-stock transaction is set to close in the second half of 2026, combining strengths to enhance market presence.

The merger will see Axcelis, specializing in ion implantation systems, and Veeco, known for semiconductor process equipment, joining forces. The valuation is based on share prices as of September 2025 and existing debts from June 2025.

Shareholders of both companies voted in favor of the merger, with Veeco shareholders set to receive 0.3575 Axcelis shares per Veeco share. The merged company is projected to have 58% ownership by Axcelis shareholders and 42% by Veeco shareholders.

The integration of technologies from Axcelis and Veeco aims to expand the total addressable market to over $5bn, driven by growth in AI and power solutions. The combined entity will become the fourth largest US wafer fabrication equipment supplier by revenue.

Anticipated benefits of the merger include revenue synergies through technology integration and cost-saving opportunities, with annual run-rate cost synergies of $35m expected within two years post-closing. The combined company is forecasted to generate $1.7bn in revenue for fiscal year 2024.

Post-merger governance will consist of 11 directors, with Russell Low as president and CEO of the combined entity. James Coogan will continue as CFO. The merger is subject to customary closing conditions and regulatory approval from China’s State Administration for Market Regulation.

Axcelis recently launched the Purion H6 high current ion implanter to cater to next-generation semiconductor devices, focusing on purity, precision, and productivity. The system offers improvements in source life, particle control, and dosimetry to address various market applications.

Read more at Yahoo Finance: Axcelis-Veeco $4.4bn merger receives shareholder approval