Durham, N.C. — Cree, Inc. has entered into a definitive agreement to acquire the gallium nitride (GaN) substrate and epitaxy business of Advanced Technology Materials, Inc., a wholly owned subsidiary of ATMI, Inc., through an asset purchase transaction. Cree will purchase the assets of the business, including related intellectual property, fixed assets and inventory, in exchange for cash. The parties anticipate that the acquisition, which is subject to certain third-party approvals and other customary conditions, will close during the fourth quarter of Cree's fiscal year ending in June. The acquisition will be accounted for under the purchase method of accounting with no resulting goodwill. The transaction is not expected to have a material effect on Cree's earnings per share.

Chuck Swoboda, CEO and president of Cree, stated, "We believe ATMI's GaN substrate and epitaxy capability will complement Cree's existing silicon carbide and GaN materials business. In addition, this acquisition provides Cree with fundamental IP related to GaN substrates and epitaxy technology, which is synergistic with our existing patent portfolio in the optoelectronic, materials and microwave areas."

Dr. Calvin Carter, Cree's director of materials technology, added, "We are pleased to enter into this agreement with ATMI. They are a well respected and recognized industry leader in GaN materials. We intend to continue to service existing ATMI GaN customers and believe our own use of GaN substrates could provide performance enhancements for our future products."

RSS    Save to Del.icio.us  Digg This