Dan’s Biz Bookshelf: ‘Elevate: Push Beyond Your Limits'
The Marketing Minute: The First Step to More Sales—Marketing
It’s Only Common Sense: Customer Service Is Sales in Disguise
Cree, Inc. to sell LED Business to SMART Global Holdings, Inc. for up to $300 Million
October 19, 2020 | Business WireEstimated reading time: 1 minute
Cree, Inc. announced that the Company has entered into a definitive agreement to sell its LED Products business unit (“Cree LED”) to SMART Global Holdings, Inc. for up to $300 million, including fixed upfront and deferred payments and contingent consideration.
Under the terms of the agreement, which has been approved by the Company’s board of directors, Cree expects to receive an initial cash payment of $50 million upon closing and $125 million to be paid upon maturity of a seller note issued by SMART to Cree due August 2023. Cree also 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, also payable in the form of a three-year seller note.
“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,” said 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.”
Cree LED has one of the industry’s widest portfolios of highly efficient 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 thrilled to welcome Cree LED to the SMART family,” said Mark Adams, President and CEO of SMART Global Holdings. “As the leader in LED lighting technology with a highly respected brand and expansive patent portfolio, 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.”
Share on:
Suggested Items
The Government Circuit: Three Inescapable Conclusions About Global Trade Policies
07/17/2025 | Chris Mitchell -- Column: The Government CircuitAmid a series of recent moves by U.S. President Donald Trump to escalate trade policy pressure on key U.S. partners, including Europe, Canada, Mexico, Japan, and Malaysia, the Global Electronics Association’s recent report on global trade flows in the electronics industry is overflowing with relevant insights. The main message is that electronics supply chains are more globally integrated than any other industry, surpassing even the automotive sector in cross-border complexity.
The Wire Association International’s Wire Expo to Co-Locate with the Electrical Wire Processing Technology Expo (EWPTE)
07/16/2025 | Global Electronics AssociationThe Wire Association International Inc. (WAI) announces plans to co-locate its biennial Wire Expo with the Wiring Harness Manufacturer’s Association (WHMA)/Global Electronics Association’s Electrical Wire Processing Technology Expo (EWPTE) May 6-7, 2026. The two shows will co-locate at the Baird Center, Milwaukee, Wisconsin, USA.
The Pulse: Design Constraints for the Next Generation
07/17/2025 | Martyn Gaudion -- Column: The PulseIn Europe, where engineering careers were once seen as unpopular and lacking street credibility, we have been witnessing a turnaround in the past few years. The industry is now welcoming a new cohort of designers and engineers as people are showing a newfound interest in the profession.
Flexible Circuit Technologies Welcomes Regional Business Development Manager Derek Rossberg
07/15/2025 | Flexible Circuit TechnologiesFlexible Circuit Technologies a Minnesota-based flexible circuit and advanced electronics contract manufacturer, welcomes Derek Rossberg as Regional Business Development Manager.
IPC Hall of Fame Spotlight Series: Highlighting Lionel Fullwood
07/15/2025 | Dan Feinberg, I-Connect007Many IPC members who have contributed significantly to IPC and our industry have been awarded the IPC Raymond E. Pritchard Hall of Fame (HOF) Award. Though many early HOF members have passed away and are unknown to today’s IPC membership, their contributions still resonate. This special series on IPC Hall of Fame members provides a reminder of who was honored and why. As a bonus, for those who are still around, we get to find out what these talented individuals are up to today.