Cree to Acquire INTRINSIC Semiconductor
Cree, Inc. announced that it has signed a definitive agreement to acquire privately held INTRINSIC Semiconductor Corp. Under the terms of the agreement, Cree will acquire all of 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. 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.
"INTRINSIC has developed the first commercially available, zero micropipe SiC substrates using their ZMP™ technology. We believe the combination of Cree's technology and manufacturing expertise with INTRINSIC's ZMP technology will accelerate the commercialization of low-defect 100mm and 150mm substrates. These substrates should not only support our cost roadmap for LEDs, but more importantly, they should also enable us to more rapidly commercialize higher-power devices for motor-control applications and hybrid vehicles," stated Chuck Swoboda, Cree's chairman and CEO.
"We are extremely pleased to be joining the Cree team," said Dr. Cengiz Balkas, president & CEO of INTRINSIC. "The contribution of INTRINSIC's ZMP process to Cree's existing world-class SiC technology and high-volume manufacturing capability represents a unique opportunity to make a new generation of cost-effective SiC devices available sooner than had previously been envisioned."
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.