Full Press Release Details
Bruker Announces Agreement to
Acquire Veeco s Scanning Probe Microscopy (SPM) and Optical Industrial
Metrology (OIM) Scientific Instruments Business
Massachusetts, August 16, 2010 (BUSINESS WIRE) Bruker Corporation
(NASDAQ: BRKR) today announces the signing of an agreement to acquire the
Scanning Probe Microscopy (SPM) and Optical Industrial Metrology (OIM)
instruments business from Veeco Instruments, Inc. (NASDAQ: VECO) for $229
million in cash. The transaction has been
approved by the Boards of Directors of both companies and is expected to close
during the fourth quarter of 2010, pending regulatory review and subject to
customary closing conditions.
The worldwide SPM and
OIM instruments business to be acquired by Bruker from Veeco consists of the
industry leading SPM instruments business, headquartered in Santa Barbara,
California, and leading OIM product lines developed in Tucson, Arizona, as well
as Veeco s associated global SPM/OIM field sales and support organization.
The combined SPM and
OIM instruments business is forecasted to contribute revenues of greater than
$130 million, and adjusted operating margins (excluding related acquisition,
restructuring, relocation and non-cash intangible amortization expenses) of
greater than 15% to Bruker in the year 2011.
The Veeco SPM and OIM instruments business in 2009 geographically
derived its revenues approximately 38%
from Asia-Pacific, 31% from the Americas, and 31% from Europe, and in terms of
customer type approximately 45% from applied/industrial customers and 55% from
academic/government customers. Bruker estimates that the
acquisition will be two to four cents accretive to 2011 GAAP EPS, and six to
eight cents accretive to 2011 adjusted EPS.
After the closing of
the acquisition, Bruker intends to continue to operate the SPM and OIM
instruments business in California and Arizona.
Bruker expects to retain the vast majority of the present SPM and OIM
business management, operations, research and development, sales and marketing,
as well as global applications and service personnel, and to integrate the SPM
and OIM division s international field sales and support staff with Bruker s
existing country sales offices, applications laboratories and service centers
Bruker today offers a
broad range of high-performance X-Ray diffraction, X-Ray fluorescence and X-Ray
microanalysis systems, as well as EDS and EBSD analyzer accessories for
electron microscopes for materials, life-science and nanotechnology research
and analysis. The Veeco SPM and OIM
instruments are highly complementary to Bruker s products, and the combined
product portfolio is expected to make Bruker a global leader in materials
research and nanotechnology analysis instrumentation.
Bruker President and CEO, commented: Veeco s SPM and OIM systems fit perfectly
into Bruker s high-performance scientific instruments strategy, and are highly
complementary to our existing product portfolio. We believe that this acquisition will expand
the total addressable market segments for our materials
and nanotechnology research and analysis systems to over two billion dollars
annually. Moreover, we believe this
acquisition represents an excellent opportunity for Bruker to deploy its strong
balance sheet, and we expect the acquisition to be accretive to both our GAAP
and adjusted EPS in 2011.
continued: We are very impressed by the recent turnaround in the Veeco SPM and
OIM instruments business, which was accomplished primarily through significant
investment in research and development, and a drive for operational excellence
improvement. This successful initiative has resulted in an
impressive array of novel, proprietary technologies and innovative,
customer-oriented products in the last two years. We are looking forward to
having the capable SPM and OIM instrument teams in California, Arizona and in
the international field organization join Bruker after the closing. Most importantly, we are looking forward to
welcoming the customers of the present Veeco SPM and OIM products to
Bruker. We are very committed to
providing the highest level of applications support and technical service, as
well as continued applications and product development to this customer base.
John Peeler, Chief Executive Officer of Veeco, stated The
agreement to sell the SPM and OIM instruments division to Bruker will allow
Veeco to focus on further expanding our LED, solar and data storage Process
Equipment businesses. We are pleased
that Bruker, one of the world s leading scientific instruments companies, will
continue our SPM and OIM instruments businesses with a strong commitment to
customer support and innovation.
Bruker Corporation is a
leading provider of high-performance scientific instruments and solutions for
molecular and materials research, as well as for industrial and applied
analysis. For more information about Bruker Corporation, please visit www.bruker.com.
Veeco Instruments Inc.
designs, manufactures, markets and services enabling solutions for customers in
the HB-LED, solar, data storage, semiconductor, scientific research and
industrial markets. We have leading technology positions in our three
businesses: LED & Solar Process Equipment, Data Storage Process
Equipment, and Metrology Instruments. Veeco s product development, marketing,
engineering and manufacturing facilities are located in New York, New Jersey,
California, Colorado, Arizona, Massachusetts and Minnesota. Global sales and
service offices are located throughout the U.S., Europe, Japan and Asia
Pacific. http://www.veeco.com/
BRUKER CAUTIONARY STATEMENT
contained in this presentation that do not describe historical facts may
constitute forward-looking statements as that term is defined in the Private
Securities Litigation Reform Act of 1995. Any forward-looking statements
contained herein are based on current expectations, but are subject to risks
and uncertainties that could cause actual results to differ materially from those
projected, including, but not limited to, risks and uncertainties relating to
adverse changes in conditions in the global economy and volatility in the
capital markets, the integration of businesses we have acquired or may acquire
in the future, changing technologies, product development and market acceptance
of our products, the cost and pricing of our products, manufacturing,
competition, dependence on collaborative partners and key suppliers, capital
spending and government funding policies, changes in governmental regulations,
realization of anticipated benefits from economic stimulus programs,