DURHAM, N.C., 28 June 2006. Cree Inc., a developer and manufacturer of semiconductor materials and electronic devices made from silicon carbide (SiC), has signed a definitive agreement to acquire privately held Intrinsic Semiconductor Corporation, a leader in research and development of low defect density SiC substrates.
Integration of Intrinsic's technology into Cree's materials product line should accelerate development of larger-diameter, high-quality SiC wafers, which should enable new high-power semiconductor devices and lower cost LEDs.
Under the terms of the agreement, Cree will acquire all the outstanding Intrinsic capital stock and options based on a valuation of $46 million, with approximately $43.5 million to be paid in cash for the outstanding stock and the remainder to be paid through the assumption of outstanding Intrinsic stock options.
The transaction is expected to be completed during July 2006 and should not have a material impact to Cree's fiscal 2007 earnings. Cree expects to incur approximately $325,000 of nonrecurring costs in completing the acquisition.