Cree officially completes the sale of the LED product business unit

Release Date:2021-03-08 14:57

Cree announced on March 1 that it has completed the sale of its LED product business unit ( "Cree LED ") to SMART Global Holdings, Inc..SMART licenses to incorporate the Cree LED brand name into the SMART business portfolio.

According to the terms of the transaction, Cree will receive US$300 million, including a cash purchase price of US$50 million, and a seller’s bill of US$125 million that will be paid at maturity in 2023. Based on the revenue and gross profit performance of the first four full quarters after the Cree LED transaction, Cree may also receive up to $125 million in profit payments, or it can be paid in the form of three-year seller bills.

Cree will change the company name to Wolfspeed later this year.