BERLIN—German chip maker Infineon Technologies AG said Thursday it has agreed to buy the North Carolina-based company Wolfspeed from Cree Inc. for $850 million in cash, confirming an earlier report by The Wall Street Journal. The acquisition will strengthen Infineon’s position as a supplier of power solutions in high-growth markets such as electric cars, renewable energy and next-generation cellular infrastructure relevant to the so-called Internet of Things, the Munich-based semiconductor maker said. ...
Infineon Technologies, the German chip maker, has agreed to buy Cree's Wolfspeed, the North Carolina-based company, for $850m in cash. Infineon said the acquisition will strengthen its positions as a supplier of power solutions in high-growth markets such as electric cars, renewable energy and next-gen cellular infrastructure for IoT. Its margin and adjusted earnings per share will be immediately boosted. The acquisition will be funded by $720m in bank financing and $130m in existing cash. Despite reducing short-term profit, the deal will increase free cash flow for Cree and speed its "transition to a more focused LED lighting company".