Cree sells LED biz to SMART Global Holdings
Creates a pure-play global semiconductor powerhouse focused on providing disruptive technology solutions
Cree Inc., Durham NC, has entered into a definitive agreement to sell its LED Products business unit to SMART Global Holdings Inc. for up to USD$300-million, including fixed upfront and deferred payments and contingent consideration.
Cree LED has one of the industry’s widest portfolios of high efficiency LED chips and high-performance LED components and represents one of the strongest brands in the industry. SMART is a global leader in specialty memory, storage and high-performance computing solutions serving the electronics industry for over 30 years. Leveraging SMART’s diverse customer base and global operations, Cree LED will be well positioned to continue to deliver industry leading products.
“We are pleased to announce the sale of our LED Products business to SMART, which represents another key milestone in our transformational journey to create a pure-play global semiconductor powerhouse,” says Cree CEO Gregg Lowe. “This transaction uniquely positions us with a sharpened strategic focus to lead the industry transition from silicon to silicon carbide and further strengthens our financial position, which will support continued investments to capitalize on multi-decade growth opportunities across EV, 5G and industrial applications. SMART has a strong platform and a solid track record of successfully acquiring and integrating technology businesses.”
Deal closes Q1 in 2021
The transaction is subject to required regulatory approvals and satisfaction of customary closing conditions, and is targeted to close in the first calendar quarter of 2021. Following the closing of the transaction, SMART will license and incorporate the Cree LED brand name into the SMART portfolio of businesses.
“We are thrilled to welcome Cree LED to the SMART family,” adds Mark Adams, president and CEO of SMART Global Holdings. “Cree has a track record of delivering best-in-class solutions and I am very excited about the opportunities that lie ahead for Cree LED as part of the SMART portfolio of products.”