Cree will acquire LED Lighting Fixtures

New York, February 8th (MarketWatch) - CREE Inc. (CREE) on Friday announced the signing of a formal agreement, will be about $77 million in cash and stock price acquisition of privately held LED Lighting Fixtures (LLF).

Under the agreement, Cree will pay $26 million 400 thousand to $LLF in new product research and development rights in the next three years, and will retain the company's key employees.

The specific number of shares issued will be determined based on the average closing price of $28.32 for the last 20 trading days of Cree.

Durham, based in North Carolina, Cree, said the acquisition would provide direct access to the lighting market.

Upon completion of the acquisition, the company's business will include light-emitting diode chips, components and lighting products.

Cree expects the acquisition will increase its fiscal year 2009 revenue of $30 million.

The company expects the transaction will have a slight dilution effect on GAAP earnings per share, but will make a slight increase in non GAAP earnings per share.

Source: Hunan Economic Net