Merger! .43 VECO for 1 CVCI
Tuesday February 29, 8:14 am Eastern Time
Company Press Release
Veeco Instruments and CVC, Inc. Announce Merger Agreement
Merger To Create A Leading Worldwide Capital Equipment Supplier For Disk Drive Components, Optical Telecommunications Components And Semiconductor Devices
PLAINVIEW, N.Y./ROCHESTER, N.Y.--(BUSINESS WIRE)--Feb. 29, 2000-- Veeco Instruments Inc. (Nasdaq: VECO - news) and CVC, Inc. (Nasdaq: CVCI - news) today announced the signing of a definitive merger agreement. Veeco and CVC supply process and metrology equipment for data storage, optical telecommunications and semiconductor applications.
Under the terms of the agreement, unanimously approved by the Boards of Director of both companies, CVC shareholders will receive 0.43 shares of Veeco common stock for each share of CVC common stock they hold. The merger, which is intended to be tax-free to CVC shareholders and to be accounted for as a pooling of interests transaction, is expected to close in the second quarter of this year, pending the vote of shareholders of both companies and other customary closing conditions. The holders of a majority of CVC's outstanding shares have agreed to vote in favor of the merger, assuring CVC shareholder approval. Following the merger, CVC will become a wholly-owned subsidiary of Veeco.
Mr. Edward H. Braun will remain Chairman and Chief Executive Officer of Veeco Instruments and Ms. Christine B. Whitman, CVC's Chairman, President and CEO, will become President and Chief Operating Officer of Veeco and will serve on Veeco's Board of Directors.
Mr. Braun commented, ``This combination of Veeco and CVC provides broader equipment and process solutions to our data storage, optical telecommunications and semiconductor customers. CVC is an ideal merger partner - bringing complementary technology leadership, a track record of profitability and a strong management team. We forecast revenues to exceed $400 million in calendar 2000 for the combined companies.'
Ms. Whitman added, ``The merger with Veeco is strategically very compelling. Veeco's widely recognized reputation in metrology is a strong complement to our integrated thin film process technology. The combined company will have significant opportunity to leverage and broaden our product offerings and technological expertise.' |
