(Bloomberg) -- Cree Inc. bought assets from Infineon Technologies AG including a factory in California for 345 million euros ($428 million), in a bid to expand into wireless markets such as 5G.
The U.S. chipmaker bought Infineon's Radio Frequency Power Business assets to bolster its Wolfspeed unit, it said Tuesday in a statement. With the purchase, Cree will gain access to “additional markets, customers and packaging expertise,” Chief Executive Officer Gregg Lowe said.
The deal comes amid a long-standing relationship between the two companies. In February the pair agreed on a long-term supply agreement for the provision of silicon carbide wafers, used in electric mobility and solar energy products.
Infineon last year tried to buy Cree's Wolfspeed Power unit for $850 million in cash but the deal was blocked amid national security concerns.
As part of the latest deal, Cree bought assets including Infineon's main factory in Morgan Hill, California, patents and about 260 employees in the U.S. The deal has been funded by cash and borrowings on its revolving line of credit, it said. The new business is targeted to increase annual sales by approximately $115 million in the first twelve months after the acquisition.
To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net.
To contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Molly Schuetz
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