Cree to Acquire INTRINSIC Semiconductor
Cree, Inc. Press ReleaseFlashlightNews.org - 06/26/2006
Cree Inc.
DURHAM, NC. - Cree, Inc., the world leader in the development and manufacture of semiconductor materials and electronic devices made from silicon carbide (SiC), today announced it has signed a definitive agreement to acquire privately held INTRINSIC Semiconductor Corporation, a leader in research and development of low defect density SiC substrates. 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.
About Cree, Inc.
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 significantly increasing their energy performance and efficiency.
Key to Cree’s market advantage is its world-class materials expertise in SiC and GaN for chips and packaged devices that can handle more power in a smaller space while producing less heat than other available technologies, materials and products. Cree drives its increased performance technology into multiple applications including exciting alternatives in brighter and more tunable light for general illumination, backlighting for more-vivid displays, optimized power management for high-current switch-mode power supplies and variable-speed motors, and more effective wireless infrastructure for data and voice communications.
Cree customers range from innovative lighting fixtures makers to defense-related federal agencies. Cree’s product families include blue and green LED chips, lighting LEDs, LED backlighting solutions, power-switching devices and radio-frequency/wireless devices. For product specifications please refer to www.cree.com.
About INTRINSIC Semiconductor Corporation
NTRINSIC Semiconductor Corporation of Dulles, Virginia, was founded in 2002, with the mission of developing materials and device technologies based on SiC and GaN materials. They have become a technological leader with the recent introduction of their ZMP SiC wafers. The company acquired Bandgap Technologies and AMDS in 2004, both of which were dedicated to either SiC crystal growth or SiC device development.
This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including the ability of the parties to satisfy conditions to closing the transaction, the possibility of unanticipated delays to closing the transaction, the possibility the transaction will not close, the ability of the combined businesses to be integrated successfully with Cree’s current operations, the ability to continue INTRINSIC’S research and development successfully, the ability to commercialize products using the combined technology, the costs of commercialization and production efforts, the actual costs of combining the businesses, and other factors discussed in Cree’s filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended June 26, 2005, and subsequent filings.
Cree is a registered trademark of Cree, Inc. ZMP is a trademark of INTRINSIC Semiconductor Corporation.