Core Viewpoint - The merger between Axcelis and Veeco is expected to create a leading semiconductor equipment company with a projected enterprise value of approximately $4.4 billion, enhancing operational conditions, R&D capabilities, and product offerings while achieving cost and revenue synergies [3][4]. Financial Projections - The combined company is forecasted to generate revenue of $1.7 billion for the fiscal year 2024, with a non-GAAP gross margin of 44% and an adjusted EBITDA of $387 million, excluding anticipated synergies [3][6]. - The merger is expected to yield annual run-rate cost synergies of $35 million within 24 months post-transaction, with a significant portion realized within the first 12 months [6]. Shareholder Structure - Post-merger, Axcelis shareholders will own approximately 58% of the combined company, while Veeco shareholders will hold about 42% [3]. Market Opportunities - The merger is projected to expand the total addressable market to over $5 billion, leveraging long-term growth drivers such as AI and power solutions [5]. - The combined entity will become the fourth-largest wafer fabrication equipment supplier in the U.S. by revenue, enhancing competitiveness in the global semiconductor equipment value chain [5]. Leadership and Governance - The board of the merged company will consist of 11 members, with 6 from Axcelis and 4 from Veeco, and will be chaired by Thomas St. Dennis [7]. - Russell Low will serve as the President and CEO of the merged company, with James Coogan continuing as CFO [7]. Operational Strength - The merged company is expected to maintain a robust balance sheet with over $900 million in projected cash post-transaction, supporting organic growth and shareholder returns [6]. - The operational forecast includes a non-GAAP EBITDA margin of 22% for 2024, excluding expected cost synergies [6]. Company Backgrounds - Axcelis has over 45 years of experience in providing innovative solutions for the semiconductor industry, focusing on ion implantation systems [8]. - Veeco is recognized for its advanced semiconductor process equipment, including laser annealing and MOCVD technologies, with a recent revenue of $166.1 million in Q2 2025 [15][16].