Veeco Instruments Inc. has completed the previously announced acquisition of Synos Technology, Inc. (“Synos”).
Synos designs and manufactures Fast Array Scanning™ Atomic Layer Deposition (FAST-ALD™) systems that are currently expected to enable the production of flexible organic light-emitting diode (OLED) displays for mobile devices. The business, with operations in California and Korea, has been renamed Veeco ALD Inc.
“We have found a great fit to add to Veeco’s technology portfolio and expand our growth opportunities,” said John R. Peeler, Veeco’s Chairman and Chief Executive Officer. “Veeco’s new fast array scanning ALD has the potential to solve the encapsulation issue that has stalled industry adoption of flexible OLED technology for mobile phones. In addition, we see numerous additional opportunities for FAST-ALD in OLED TV, lighting, solar, batteries and other large adjacent markets.”
FAST-ALD represents a paradigm shift in a technology long known for excellent deposition uniformity and defect-free films.
While traditional ALD is slow, costly and limited to high-temperature “chamber-sized” reactors, FAST-ALD can deposit materials below 100º Celsius and up to 10 times faster with more efficient use of materials and virtually no substrate size limitation.
In connection with the acquisition, Veeco granted equity awards to 52 Synos employees. Pursuant to Nasdaq Listing Rule 573(c)(4), the equity awards were granted under the Company’s 2013 Inducement Stock Incentive Plan (the “Plan”), which the Compensation Committee of the Board of Directors adopted to facilitate the granting of equity awards as an inducement to these employees to commence employment with Veeco.
Awards granted to Synos employees as a part of this plan were comprised of (i) 124,500 stock options having an exercise price of $37.70, the closing price on the date prior to grant (as provided in the Plan), and which will vest, subject to the recipient’s continued service, over a three year period with one-third of each award vesting on each of the first three anniversaries of the award; the stock option awards have a ten-year term, and (ii) 62,500 restricted stock units were granted that will vest, subject to the recipient’s continued service, over a four year period with one third of each award vesting on each anniversary of the award, beginning with the second anniversary and vesting, and (iii) 25,200 restricted stock units were granted that will vest, subject to the recipient’s continued service, on the second anniversary of the award.