News

16 August 2010

 

Veeco sells Metrology business to Bruker for $229m

Epitaxial deposition, process, and metrology equipment maker Veeco Instruments Inc of Plainview, NY, USA has agreed to sell its Metrology business to Bruker Corp of Billerica, MA, USA (a provider of scientific instruments and solutions for molecular and materials research as well as for industrial and applied analysis) for $229m.

The transaction has been approved by the board of directors of both firms and is expected to close in fourth-quarter 2010, pending regulatory review and subject to customary closing conditions. Veeco currently expects cash proceeds from the transaction to be about $160m net of estimated applicable taxes and transaction fees.

The sale will transfer Veeco’s worldwide Metrology business to Bruker, including its Atomic Force Microscope (AFM) business in Santa Barbara, CA and its Optical Industrial Metrology (OIM) business in Tucson, AZ, as well as its associated global AFM/OIM field sales and support organization. Bruker intends to combine Veeco Metrology with its global Bruker Nano instruments business, which sells systems and analytical solutions for materials and nanotechnology research.

“Veeco expects to benefit from greater focus on and investment in our LED & Solar and Data Storage Process Equipment businesses,” says Veeco’s CEO John R. Peeler. “The sale of Metrology will allow us to accelerate our progress developing new products, gaining share, and aligning with key customers in markets with large growth opportunities, including several ‘clean tech’ markets. The sale is also expected to give us additional financial flexibility to pursue acquisitions and expand customer support for our growing Asia business,” he adds.

“Veeco Metrology is a great business that is strong, growing and profitable and has many exciting new products,” Peeler continues. “Even so, it lacks meaningful synergies with our Process Equipment businesses in technology, distribution and customers. It will be a better fit as part of a large and successful instrumentation company, such as Bruker, where the focus will be on continued development of innovative scientific instruments,” he concludes.

“We are excited to add Veeco’s industry-leading scanning probe microscope (SPM) and optical metrology systems to the Bruker product portfolio of high-performance materials research and nanotechnology instruments,” says Bruker’s president & CEO Frank H. Laukien.

Veeco will account for the Metrology business segment as a ‘discontinued operation’ effective 15 August. It is therefore updating guidance for third-quarter 2010 revenue from $290–315m to $255–280m from continuing operations, with earnings per share of $1.45–1.72 ($1.13–1.33 non-GAAP) rather than $1.55–1.82 ($1.23–1.43 non-GAAP). Full-year 2010 revenue should now be $1bn (rather than “over $1bn”), with about 90% from the LED & Solar business segment (compared with 73% for Q3/2010, and just 54% for full-year 2009).

See: Veeco Company Profile

Search: Veeco Metrology Bruker AFM

Visit: www.veeco.com

Visit: www.bruker.com