Cree, Lextar Sign LED Agreement

Cree and Lextar Electronics have entered into a supply agreement for sapphire-based LED chips, with Cree gaining approximately 13% of Lextar through an $83 million investment. The deal also includes a royalty-bearing license agreement for certain Cree LED chip and component intellectual property. The deal will make Cree the second-biggest stakeholder in Lextar after AU Optronics.

The agreement has been approved by both companies’ boards of directors and is expected to close in Cree’s second quarter of fiscal year 2015, subject to the approval of Lextar’s shareholders and the Taiwan Investment Committee, as well as other customary closing conditions.