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Cree, Inc. to sell LED Business to SMART Global Holdings, Inc. for up to $300 Million

2020/10/20

Cree, Inc. to sell LED Business to SMART Global Holdings, Inc. for up to $300 Million

OCTOBER 19, 2020


Transaction represents a key milestone in Cree’s transformation to focus on silicon carbide and gallium nitride devices, as well as materials. Consideration includes $50 million upfront payment; $125 million seller note and up to $125 million earn-out


DURHAM, N.C. – Cree, Inc. (Nasdaq: CREE) today announced that the Company has entered into a definitive agreement to sell its LED Products business unit (“Cree LED”) to SMART Global Holdings, Inc. (Nasdaq: SGH) 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.


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