Cree to Acquire Intrinsic SC
in $46M Cash/Stock Deal
DURHAM, N.C., June 26, 2006 -- Cree Inc., a maker of semiconductor materials and electronic devices made from silicon carbide (SiC), announced it has signed a definitive agreement to acquire Intrinsic Semiconductor Corp., a private developer of low-defect-density SiC substrates, for about $46 million in cash and stocks.
Cree said the integration of Intrinsic's technology into its materials product line should accelerate development of larger-diameter, high-quality SiC wafers, enabling new high-power semiconductor devices and lower-cost LEDs.
Chuck Swoboda, Cree's chairman and CEO, said, "Intrinsic has developed the first commercially available, zero micropipe SiC substrates using their ZMP technology. We believe the combination of Cree's technology and manufacturing expertise with Intrinsic's ZMP technology will accelerate the commercialization of low-defect 100 and 150-mm substrates. These substrates should not only support our cost roadmap for LEDs, but more importantly, they should also enable us to more rapidly commercialize higher-power devices for motor-control applications and hybrid vehicles."
The transaction is expected to be completed during July 2006; Cree said it should have no material impact on its fiscal 2007 earnings. Cree said it expects to incur approximately $325,000 of nonrecurring costs in completing the acquisition.
For more information, visit: www.cree.com
MORE FROM PHOTONICS MEDIA