(RTTNews) - Infineon Technologies AG (IFNNY) and Cree, Inc. (CREE) announced a definitive agreement to acquire the Wolfspeed Power and RF division of Cree for a purchase price of $850 million. The deal also includes the related SiC wafer substrate business for power and RF power. Infineon said the business to be acquired by the company has generated pro-forma revenues of $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.
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. With an IP portfolio of approximately 2,000 patents and patent applications, the deal complements Infineon's previous acquisition of International Rectifier in early 2015.
Infineon said the acquisition will enable it to provide the broadest offering in compound semiconductors and will further strengthen the company as a supplier of power and RF power solutions in high-growth markets such as electro-mobility, renewables and next-generation cellular infrastructure relevant for IoT.