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Veeco Instruments Inc. (VECO)

  • 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.
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  • 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.
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Company Description
Veeco Instruments Inc design, manufacture, and market thin film equipment. The Company's equipment are sold to make electronic devices including LED, power electronics, wireless devises, hard disk drives and semiconductors.