At
closing, Cree issued 1,852,335 shares of common stock and paid approximately
$16.45 million in cash in exchange for LLF shares. Cree also assumed
outstanding LLF stock options. Additional cash consideration of up to
$26.4 million may be payable over the next three years tied to new product
milestones and key employee retention.
This
acquisition expands Cree’s market opportunity by providing direct access to the
lighting market. Cree’s business now encompasses LED chips,
components and lighting solutions. It further enables Cree to drive
retrofit solutions to convert existing lighting infrastructure to
energy-efficient lighting and to accelerate the adoption of LED
lighting.
“The new
Cree LED Lighting Solutions team is delivering industry-leading LED lighting
products and working to set the standard for 21st century
energy-efficient lighting,” said Chuck Swoboda, chairman and chief executive
officer of Cree. “We are out to lead the LED lighting revolution and
to obsolete the lightbulb.”
The
company plans to announce financial results for its third fiscal quarter, ending
on March 30, after market close on April 22 and will provide additional
information about the acquisition at that time.
About
Cree
Cree is
leading the LED lighting revolution and setting the stage to obsolete the
incandescent light bulb through the use of energy-efficient,
environmentally-friendly LED lighting. Cree is a market-leading innovator
of lighting-class LEDs, LED lighting retrofit solutions, and semiconductor
solutions for backlighting, wireless and power applications.
Cree’s
product families include blue and green LED chips, high brightness LEDs,
lighting-class power LEDs, power-switching devices and radio-frequency/wireless
devices. Cree solutions are driving improvements in applications such
as general illumination, backlighting, electronic signs and signals,
variable-speed motors, and wireless communications.
For additional product and company information please refer
to www.cree.com.
This
press release contains forward-looking statements involving risks and
uncertainties, both known and unknown, that may cause actual results to differ
materially from those indicated. Actual results may differ materially due to a
number of factors, such as the possibility that costs associated with
integrating the businesses may be greater than anticipated; the ability of the
combined businesses to be integrated successfully with Cree’s current
operations; the risk of intellectual property litigation; the ability of the
combined companies to achieve targeted results; customer acceptance of LED
products; the rapid development of new technology and competing products that
may impair demand or render Cree’s or LLF’s products obsolete; and other factors
discussed in Cree’s filings with the Securities and Exchange Commission,
including its report on Form 10-K for the year ended June 24, 2007, and
subsequent filings.
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Cree is a
registered trademark of Cree, Inc.
LLF is a
trademark of Cree LED Lighting Solutions, Inc.