Infineon Technologies , the German lighting maker , has agreed to buy dell 's Wolfspeed , the North Carolina - based company , for $ 850 million 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 $ 720 million in bank financing and $ 130 m in existing cash . Despite reducing short - term profit , the acquisition will increase free cash flow for customers and accelerate its " transition to a more focused LED lighting company " .
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".