Cree, Inc. (Nasdaq: CREE), a market leader in LED solid-state lighting components, has agreed to pay up to $103.4 million to acquire LED Lighting Fixtures Inc., the company announced today.
The agreement includes a cash and stock transaction of approximately $77 million, plus up to an additional $26.4 million over a three-year period, according to a company release.
LLF develops LED lighting retrofit products, using CREE LEDs, and Cree says the acquisition will expand its market for converting existing lighting infrastructure to energy-efficient lighting.
"The combination of Cree’s lighting-class LEDs and LLF’s lighting-systems technologies should set the stage for Cree to obsolete the light bulb, a 19th century invention that wastes energy and pollutes our environment," said Chuck Swoboda, CEO of Cree. "We believe the market is at a tipping point, with billions of sockets in existing fixtures now addressable with energy-efficient LED lighting. Accelerating this market transformation benefits Cree, our LED customers and lighting consumers."
The cash and stock portions of the purchase price are to be determined at the closing. The number of shares will be based on Cree’s average closing share price over the past 20 days, which is $28.32.
Cree says this acquisition will add approximately $1 million to its consolidated revenue and reduce earnings per share by approximately $0.01 for its third fiscal quarter.
About LLF
LED Lighting Fixtures, Inc. (LLF), founded in 2005, is headquartered near Research Triangle Park, North Carolina. Its mission is to accelerate the adoption and evolution of light-emitting diodes (LEDs) into high-volume general lighting applications so that consumers can realize lower energy and maintenance costs. www.llfinc.com.
About Cree
Cree is a market-leading innovator and manufacturer of semiconductors and devices that enhance the value of solid-state lighting, power and communications products by increasing their energy performance and efficiency.
Cree’s product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio-frequency/wireless devices.
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