Veeco Instruments Inc.NASDAQ
Veeco Instruments: The Catalyst May Have Arrived
Hanging In With Veeco Instruments
Mon, May 23, 12:36 PM
- A fund known as Grand Chip Investment is acquiring Aixtron (AIXG +13.1%) for €6.00/share ($6.72/share), or €670M ($750M) after factoring net cash. The price represents a 23% premium to Aixtron's Friday close, and a 48% premium to where shares traded before Bloomberg first reported of Aixtron's sale efforts on March 31.
- The all-cash offer requires the support of shareholders owning 60% of Aixtron's shares. Though up strongly today, Aixtron still trades 8% below its buyout price, perhaps due to concerns about regulatory scrutiny.
- Aixtron popped on Friday after Bloomberg reported a €5.50/share could be close. Rival Veeco (VECO +1.6%) is up 7% over the last two trading days.
Fri, May 20, 12:38 PM
- Bloomberg reports Aixtron (AIXG +9.6%) is talking with Chinese firms about a potential sale. The report follows one on March 31 stating the German LED/chip equipment maker is holding informal sale talks and working with JPMorgan to explore options.
- Aixtron is posting big gains, but it's worth noting shares were already doing very well before Bloomberg's latest report. A broader rally in chip equipment stocks that has followed Applied Materials' strong earnings/guidance appears to be helping out.
- U.S.-based rival Veeco (VECO +3.2%) is also outperforming on a day the Nasdaq is up 1.4%. Bloomberg's March report stated Aixtron had spoken with both Veeco and Chinese firms. Both companies have been hit hard by weak LED equipment demand caused by industry oversupply.
Dec. 5, 2014, 5:10 PM
- Veeco (NASDAQ:VECO) paid $150M in cash to acquire Solid State Equipment (SSEC), the company disclosed on a CC (transcript) regarding the deal.
- SSEC's equipment is used to manufacture compound semiconductors (LEDs, power electronics, RF chips - already a core Veeco market), MEMS chips, and 3D memory and SoC packages. Customers include 3 of the top-7 LED manufacturers, 4 of the top-5 RF component makers, and all of the five biggest chip packaging/test outsourcing firms.
- Veeco notes all three markets are posting double-digit CAGRs. It expects SSEC to produce 2015 shipments of $65M and adjusted EBITDA of $15M.
Sep. 19, 2013, 11:43 AM
- Veeco (VECO +2.2%) has acquired Synos Technology, a maker of equipment used to produce flexible OLED displays for mobile devices. The company is initially paying $70M, and could pay a total of $185M if performance milestones are hit.
- The deal is expected to close in Q4. Veeco expects it to be dilutive in 2014, but "solidly accretive" in 2015.
- Veeco observes the flexible OLED display market is estimated by IHS to grow to nearly $12B in 2020 from a mere $21M in 2013, and thinks the near-term opportunity for Synos' equipment "exceeds $400 million for mobile phones alone." It also sees potential for Synos' atomic layer deposition tech to be used in "OLED TV, lighting, solar, batteries and other large adjacent markets."
- Samsung and LG have been working to bring phones with flexible OLED displays to market. However, launch dates have been delayed due to production challenges.