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© evertiq Business | February 20, 2017

Cree and Infineon call off Wolfspeed deal

Cree, Inc. will terminate the definitive agreement to sell its Wolfspeed Power and RF division, which includes the silicon carbide substrate business for power, RF and gemstone applications, to Infineon Technologies AG.
Cree and Infineon have been unable to identify alternatives which would address the national security concerns of the Committee on Foreign Investment in the United States (CFIUS), and as a result – the proposed transaction will be terminated.

“We are disappointed that the Wolfspeed sale to Infineon could not be completed,” stated Chuck Swoboda, Cree chairman and CEO. “In light of this development, we are going to shift our focus back to growing the Wolfspeed business.

Swoboda continues saying that the strength of Cree’s balance sheet and improving operating cash flow gives the company the ability to invest in Wolfspeed, while continuing to pursue its LED and Lighting growth plans.

The termination of the transaction with Infineon will trigger a termination fee of USD 12.5 million being paid to Cree. As a result of the transaction termination and Cree’s decision to focus on running the Wolfspeed business, Wolfspeed will now be reported as a separate segment of Cree’s continuing operations.

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June 25 2017 8:55 PM V8.5.5-1