Veeco Instruments and Monarch Labs Sign Definitive Merger Agreement Monarch Receives $4.6 Million Order from Seagate
Plainview, NY, January 28, 2000 – Veeco Instruments Inc. (NASDAQ:VECO) today announced that it has signed a definitive merger agreement with Monarch Labs, Inc., a privately held developer and manufacturer of automated quasi-static test systems for the data storage industry. Monarch is based in Longmont, CO, and has forecasted 2000 sales of approximately $10 million.
Under the terms of the agreement, Monarch shareholders will receive 282,227 shares of Veeco common stock in exchange for all of the outstanding shares of Monarch. The merger will be accounted for as a pooling-of-interests transaction.
In connection with a letter of intent signed this month, Veeco received purchase orders for $4.6 million for QSE™ quasi-static testers from Seagate Technology Inc. (NYSE: SEG). These systems are expected to be shipped to Seagate facilities in the U.S. and Malaysia during 2000.
Edward H. Braun, Chairman, President and CEO of Veeco, commented "Monarch's quasi-static tester for giant magnetoresistive (GMR) device performance extends Veeco's test capabilities at the wafer and slider level. We are pleased to add this complementary technology, which further strengthens Veeco's ability to provide one-stop metrology and test support for our data storage customers. The significance of this new technology is evidenced by the $4.6 million order we have received from Seagate."
Dennis J. Cahalan, President of Monarch Labs, said "Being part of Veeco allows us to gain entrance into important customers such as Seagate, rapidly expand our channels of distribution, and to draw upon Veeco's industry leading worldwide support network. By combining our strengths, we look forward to fulfilling new testing needs for next-generation head and drive designs."
Monarch's QSW and QSE™ are fully automated test system for characterizing the magnetoresistance of bulk films and patterned devices. The instrument monitors the performance of GMR heads used in high-density disk drives, providing essential feedback for process control and device performance improvement. Veeco's Metrology Group will add Monarch's quasi-static test products to its metrology family, which currently includes optical profilers, atomic force microscopes (AFMs), stylus profilers, optical defect review stations, and X-Ray fluorescence systems.
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