Close

Search

Search Menu
Photonics Media Photonics Marketplace Photonics Spectra BioPhotonics EuroPhotonics Vision Spectra Photonics Showcase Photonics ProdSpec Photonics Handbook

SMART Global Holdings to Purchase Cree LED Products Business

Facebook Twitter LinkedIn Email Comments
NEWARK, Calif., Oct. 21, 2020 — SMART Global Holdings Inc. entered into an agreement with Cree Inc. to purchase the Cree LED Products business. The acquisition is valued at up to $300 million.

SMART, a developer of electronics industry solutions for the memory, computing, and storage markets, will absorb CREE LED’s portfolio of LED chips and components. The addition will support SMART’s business expansion into specialty lighting solutions, said Mark Adams, president and CEO of SMART Global Holdings.

“This transaction uniquely positions Cree with a sharpened strategic focus to lead the industry transition from silicon to silicon carbide,” said Gregg Lowe, CEO of Cree.

Per terms of the agreement, SMART will make an initial cash payment of $50 million upon closing and an additional $125 million in a seller-financed note payable interest only until a balloon payment due in August 2023. Cree has the potential to receive an earn-out payment of up to $125 million based on the revenue and gross profit performance of Cree LED in the first full four quarters post-transaction close, payable in the form of a three-year seller note. The transaction is subject to required regulatory approvals and satisfaction of customary closing conditions. The seller-financed notes will accrue interest at an annual rate of Libor plus 3% payable quarterly.

The companies expect the transaction to close in the first calendar quarter of 2021. Following the close, SMART expects to license and incorporate the Cree LED brand and trademarks into the SMART portfolio of businesses.

Photonics.com
Oct 2020
GLOSSARY
electronics
That branch of science involved in the study and utilization of the motion, emissions and behaviors of currents of electrical energy flowing through gases, vacuums, semiconductors and conductors, not to be confused with electrics, which deals primarily with the conduction of large currents of electricity through metals.
BusinessAmericasLEDssmart LED systemsSmart LEDCreeCree Inc.acquisitionselectronicslightingOLEDssilicon carbideLight Emitting Diodelight emitting diodessemiconductorssemiconductor materials

Comments
back to top
Facebook Twitter Instagram LinkedIn YouTube RSS
©2020 Photonics Media, 100 West St., Pittsfield, MA, 01201 USA, [email protected]

Photonics Media, Laurin Publishing
x We deliver – right to your inbox. Subscribe FREE to our newsletters.
We use cookies to improve user experience and analyze our website traffic as stated in our Privacy Policy. By using this website, you agree to the use of cookies unless you have disabled them.