Veeco Instruments Signs Letter of Intent to Acquire
Slider Level Crown (SLC) Metrology Technology from Seagate
Plainview, NY, January 28, 2000 – Veeco Instruments Inc. (NASDAQ:VECO) today announced that it has signed a letter of intent to enter into a strategic alliance in which Veeco will acquire rights to slider level crown (SLC) adjust metrology technology from Seagate Technology Inc. (NYSE:SEG). The letter of intent also provides for a multi-year agreement under which Veeco will supply Seagate with SLC metrology tools, as well as other related equipment for its thin film magnetic head operations. Terms of the deal were not disclosed.
Veeco will build crown adjust systems that micro machine the thin film magnetic head while providing real time process feedback using in-situ metrology. This is a critical extension of Veeco's data storage equipment and metrology technology, allowing thin film magnetic head manufacturers improved yield and control of "fly height" characteristics.
Edward H. Braun, Veeco's Chairman, President and CEO, said, "With this acquisition, Veeco will open a design and manufacturing center in Minneapolis focusing on the development of thin film magnetic head process, metrology and test equipment for the data storage industry. Seagate SLC's 30-person development team will bring critical intellectual property and product expertise to Veeco. Initially, we expect this product line to contribute approximately $25 million to Veeco's 2000 revenues. While Seagate currently manufactures the SLC tools for internal usage, Veeco plans to continue development in order to improve and enhance its production capabilities. Going forward, it is our intention to commercialize this SLC technology for sale to the worldwide data storage industry."
James Chirico, Senior Vice President and General Manager, Recording Head Operations, Seagate Technology, said, "This strategic alliance with Veeco assures Seagate cost effective, high performance test and metrology equipment critical for our next generation data storage products. This collaboration is designed to improve Seagate's 'time to market' for advanced high density thin film magnetic head products."
veeco.com |
