MUNICH and DURHAM, N.C., July 14,
2016 /PRNewswire/ -- Infineon Technologies AG (FSE: IFX /
OTCQX: IFNNY) and Cree, Inc. (Nasdaq: CREE) announced today that
Infineon has entered into a definitive agreement to acquire the
Wolfspeed Power and RF division ("Wolfspeed") of Cree. The deal
also includes the related SiC wafer substrate business for power
and RF power. The purchase price for this planned all-cash
transaction is US Dollar 850 million
(approximately Euro 740 million).
This acquisition will enable Infineon to provide the broadest
offering in compound semiconductors and will further strengthen
Infineon as a leading supplier of power and RF power solutions in
high-growth markets such as electro-mobility, renewables and
next-generation cellular infrastructure relevant for IoT.
Dr. Reinhard Ploss, CEO of
Infineon Technologies AG, said: "Joining forces with Wolfspeed
represents a unique growth opportunity. Wolfspeed's and Infineon's
businesses and expertise are highly complementary, bringing
together industry leading experts for compound semiconductors. This
will enable us to create additional value for our customers with
the broadest and deepest portfolio of innovative technologies and
products in compound semiconductors available in the market. With
Wolfspeed we will become number one in SiC-based power
semiconductors. We also want to become number one in RF power. This
will accelerate the market introduction of these innovative
technologies, addressing the needs of modern society – such as
energy efficiency, connectivity and mobility."
Chuck Swoboda, Cree Chairman and
CEO, said: "After much consideration and due diligence over the
past year, we concluded that selling Wolfspeed to Infineon was the
best decision for our shareholders, employees and customers. We
believe that Wolfspeed will now be able to more aggressively
commercialize its unique silicon carbide and gallium nitride
technology as part of Infineon."
Frank Plastina, Wolfspeed CEO,
said: "By joining the Infineon team, Wolfspeed will now have all
the advantages of a global company in our sector, including the
ability to leverage Infineon's market reach and infrastructure.
With Infineon's complementary culture and additional investment,
we'll be better positioned to unlock the potential of our portfolio
and our people."
Wolfspeed is based in Research
Triangle Park, North Carolina, USA, and has been a part of
Cree for almost three decades. Wolfspeed is a premier provider of
SiC-based power and GaN-on-SiC-based RF power solutions. This also
includes the related core competencies in wafer substrate
manufacturing for SiC, as well as for SiC with a monocrystalline
GaN layer for RF power applications. With these competencies, more
than 550 highly skilled employees and a strong IP portfolio of
approximately 2,000 patents and patent applications, this deal
complements Infineon's previous acquisition of International
Rectifier in early 2015. Wolfspeed's SiC-based product portfolio
ideally adds to Infineon's offering.
Power management solutions based on compound semiconductors have
several advantages enabling Infineon's customers to develop systems
with higher energy-efficiency, smaller footprints and lower system
costs. Combining the comprehensive portfolios of technologies,
products and manufacturing capabilities, Infineon and Wolfspeed
will accelerate the development of components enabling customers to
develop differentiating systems. Major areas where the applications
will profit from SiC are renewables and especially automotive. Both
areas benefit from the increased power density and improved
efficiency. In automotive it fits well with the recent increased
commitment of the industry to plug-in hybrid and all-electric
vehicles (xEV). Combining both portfolios and competencies will
significantly accelerate the time-to-market for new products based
on compound semiconductors.
Next-generation cellular infrastructure standards such as 5G and
beyond will use frequencies up to 80 gigahertz. Only advanced
compound semiconductors can deliver the required efficiencies at
these high frequencies. GaN-on-Si allows higher levels of
integration and offers its advantages at operating frequencies of
up to 10 gigahertz. GaN-on-SiC enables maximum efficiency at
frequencies of up to 80 gigahertz. Both technologies are crucial
for next generation cellular infrastructure standards. Together
with its Si-based LDMOS products Infineon is the industry's most
complete provider for RF power components.
The combined portfolio advances Infineon's strategic "Product to
System" approach. Additionally, Infineon will benefit from
accelerating the adoption of SiC- and GaN-based components in
early-adopter markets, e.g. electro-mobility, high-end photovoltaic
inverter, xEV charging infrastructure, and RF power components in
cellular infrastructure.
The business to be acquired by Infineon has generated pro-forma
revenues of US Dollar 173 million in
the twelve months ending March 27,
2016. The acquisition will be immediately accretive to
Infineon's adjusted earnings-per-share and margin. Infineon will
fund the transaction with bank financing of US Dollar 720 million and US Dollar 130 million of cash-on-hand. Infineon
will maintain its strong balance sheet after the cash- and
debt-financed transaction. Infineon's capital structure will stay
well within the previously communicated targets of Euro 1 billion gross cash plus 10 to 20 percent
of revenue, and no more than two times the gross
debt-to-EBITDA.
Cree's Board of Directors and Infineon's Supervisory Board have
approved the acquisition. The closing of the transaction is subject
to regulatory approvals in various jurisdictions and is expected by
the end of calendar year 2016.
About Infineon
Infineon Technologies AG is a world
leader in semiconductor solutions that make life easier, safer and
greener. Microelectronics from Infineon is the key to a better
future. In the 2015 fiscal year (ending September 30), the Company reported sales of
about Euro 5.8 billion with some
35,400 employees worldwide. Infineon is listed on the Frankfurt
Stock Exchange (ticker symbol: IFX) and in the USA on the over-the-counter market OTCQX
International Premier (ticker symbol: IFNNY).
Further information is available at www.infineon.com
This press release is available online at
www.infineon.com/press
Follow us:
twitter.com/Infineon - facebook.com/Infineon -
plus.google.com/+Infineon
About Cree, Inc.:
Cree is a market-leading innovator
of lighting-class LEDs, lighting products and semiconductor
products for power and radio frequency (RF) applications. Cree
believes in better light experiences and is delivering new
innovative LED technology that transforms the way people experience
light through high-quality interior and exterior LED lighting
solutions.
Cree's product families include LED lighting systems and bulbs,
blue and green LED chips, high-brightness LEDs, lighting-class
power LEDs, power-switching devices and RF devices. Cree's products
are driving improvements in applications such as general
illumination, electronic signs and signals, power supplies and
inverters.
For additional product and Company information, please refer
to www.cree.com.
FORWARD-LOOKING STATEMENTS DISCLAIMER
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 risk that the transaction may be delayed or may not occur; the
ability to obtain regulatory approval or the possibility that such
regulatory approval may result in the imposition of conditions that
could cause the parties to abandon the transaction; the risk that
one or more of the conditions to closing of the transaction may not
be satisfied; the possibility that anticipated benefits of the
proposed transaction will not be realized; potential business
uncertainty, including changes to existing business relationships
during the pendency before closing that could affect either
Infineon's or Cree's financial performance; 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 28, 2015, and subsequent filings, or in Infineon's
Annual Report 2015.
Cree® is a registered trademark of Cree, Inc.
MEDIA CONTACTS
Cree:
Claire
Simmons
Cree, Inc.
Corporate Communications
media@cree.com
Infineon:
Bernd Hops
+49 89 234 23888
bernd.hops@infineon.com
Sian Cummings
+1 310 252 7148
sian.cummings@infineon.com
INVESTOR RELATIONS CONTACTS
Cree:
Phone: +1 919 407 7895
investorrelations@cree.com
Infineon:
Phone: +49 89 234 26655
investor.relations@infineon.com
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SOURCE Infineon Technologies AG; Cree, Inc.