DGAP-News: Infineon Technologies AG / Key word(s): Takeover/Acquisition
Infineon Technologies AG: INFINEON TO ACQUIRE WOLFSPEED FOR US DOLLAR 850
MILLION IN CASH
14.07.2016 / 11:56
The issuer is solely responsible for the content of this announcement.
---------------------------------------------------------------------------
- COMBINATION FURTHER STRENGTHENS INFINEON AS LEADING SUPPLIER OF POWER
AND RADIO-FREQUENCY (RF) POWER SOLUTIONS IN HIGH-GROWTH MARKETS SUCH AS
ELECTRO-MOBILITY, RENEWABLES AND NEXT-GENERATION CELLULAR
INFRASTRUCTURE RELEVANT FOR THE INTERNET OF THINGS (IOT)
- ACQUISITION FURTHER ENABLES INFINEON TO PROVIDE THE MOST COMPELLING
POWER SOLUTIONS WITH THE BROADEST OFFERING IN COMPOUND SEMICONDUCTORS
INCLUDING SILICON CARBIDE (SIC), GALLIUM NITRIDE ON SILICON (GAN-ON-
SI), AND GALLIUM NITRIDE ON SILICON CARBIDE (GAN-ON-SIC)
- TRANSACTION TO BE IMMEDIATELY MARGIN AND ADJUSTED EARNINGS-PER-SHARE
ACCRETIVE
- TRANSACTION WILL BE FINANCED BY INCREMENTAL DEBT OF US DOLLAR 720
MILLION AND US DOLLAR 130 MILLION CASH-ON-HAND
- CLOSING EXPECTED BY THE END OF CALENDAR YEAR 2016
Munich, Germany and Durham, North Carolina - July 14, 2016 - Infineon
Technologies AG (FSE: IFX / OTCQX: IFNNY) and Cree, Inc. (Nasdaq: CREE)
announced today that Infineon has entered into a definitive agreement to
acquire the Wolfspeed Power and RF division ("Wolfspeed") of Cree. The deal
also includes the related SiC wafer substrate business for power and RF
power. The purchase price for this planned all-cash transaction is US
Dollar 850 million (approximately Euro 740 million). This acquisition will
enable Infineon to provide the broadest offering in compound semiconductors
and will further strengthen Infineon as a leading supplier of power and RF
power solutions in high-growth markets such as electro-mobility, renewables
and next-generation cellular infrastructure relevant for IoT.
Dr. Reinhard Ploss, CEO of Infineon Technologies AG, said: "Joining forces
with Wolfspeed represents a unique growth opportunity. Wolfspeed's and
Infineon's businesses and expertise are highly complementary, bringing
together industry leading experts for compound semiconductors. This will
enable us to create additional value for our customers with the broadest
and deepest portfolio of innovative technologies and products in compound
semiconductors available in the market. With Wolfspeed we will become
number one in SiC-based power semiconductors. We also want to become number
one in RF power. This will accelerate the market introduction of these
innovative technologies, addressing the needs of modern society - such as
energy efficiency, connectivity and mobility."
Chuck Swoboda, Cree Chairman and CEO, said: "After much consideration and
due diligence over the past year, we concluded that selling Wolfspeed to
Infineon was the best decision for our shareholders, employees and
customers. We believe that Wolfspeed will now be able to more aggressively
commercialize its unique silicon carbide and gallium nitride technology as
part of Infineon."
Frank Plastina, Wolfspeed CEO, said: "By joining the Infineon team,
Wolfspeed will now have all the advantages of a global company in our
sector, including the ability to leverage Infineon's market reach and
infrastructure. With Infineon's complementary culture and additional
investment, we'll be better positioned to unlock the potential of our
portfolio and our people."
Wolfspeed is based in Research Triangle Park, North Carolina, USA, and has
been a part of Cree for almost three decades. Wolfspeed is a premier
provider of SiC-based power and GaN-on-SiC-based RF power solutions. This
also includes the related core competencies in wafer substrate
manufacturing for SiC, as well as for SiC with a monocrystalline GaN layer
for RF power applications. With these competencies, more than 550 highly
skilled employees and a strong IP portfolio of approximately 2,000 patents
and patent applications, this deal complements Infineon's previous
acquisition of International Rectifier in early 2015. Wolfspeed's SiC-based
product portfolio ideally adds to Infineon's offering.
Power management solutions based on compound semiconductors have several
advantages enabling Infineon's customers to develop systems with higher
energy-efficiency, smaller footprints and lower system costs. Combining the
comprehensive portfolios of technologies, products and manufacturing
capabilities, Infineon and Wolfspeed will accelerate the development of
components enabling customers to develop differentiating systems. Major
areas where the applications will profit from SiC are renewables and
especially automotive. Both areas benefit from the increased power density
and improved efficiency. In automotive it fits well with the recent
increased commitment of the industry to plug-in hybrid and all-electric
vehicles (xEV). Combining both portfolios and competencies will
significantly accelerate the time-to-market for new products based on
compound semiconductors.
Next-generation cellular infrastructure standards such as 5G and beyond
will use frequencies up to 80 gigahertz. Only advanced compound
semiconductors can deliver the required efficiencies at these high
frequencies. GaN-on-Si allows higher levels of integration and offers its
advantages at operating frequencies of up to 10 gigahertz. GaN-on-SiC
enables maximum efficiency at frequencies of up to 80 gigahertz. Both
technologies are crucial for next generation cellular infrastructure
standards. Together with its Si-based LDMOS products Infineon is the
industry's most complete provider for RF power components.
The combined portfolio advances Infineon's strategic "Product to System"
approach. Additionally, Infineon will benefit from accelerating the
adoption of SiC- and GaN-based components in early-adopter markets, e.g.
electro-mobility, high-end photovoltaic inverter, xEV charging
infrastructure, and RF power components in cellular infrastructure.
The business to be acquired by Infineon has generated pro-forma revenues of
US Dollar 173 million in the twelve months ending March 27, 2016. The
acquisition will be immediately accretive to Infineon's adjusted earnings-
per-share and margin. Infineon will fund the transaction with bank
financing of US Dollar 720 million and US Dollar 130 million of cash-on-
hand. Infineon will maintain its strong balance sheet after the cash- and
debt-financed transaction. Infineon's capital structure will stay well
within the previously communicated targets of Euro 1 billion gross cash
plus 10 to 20 percent of revenue, and no more than two times the gross
debt-to-EBITDA.
Cree's Board of Directors and Infineon's Supervisory Board have approved
the acquisition. The closing of the transaction is subject to regulatory
approvals in various jurisdictions and is expected by the end of calendar
year 2016.
ABOUT INFINEON
Infineon Technologies AG is a world leader in semiconductor solutions that
make life easier, safer and greener. Microelectronics from Infineon is the
key to a better future. In the 2015 fiscal year (ending September 30), the
Company reported sales of about Euro 5.8 billion with some 35,400 employees
worldwide. Infineon is listed on the Frankfurt Stock Exchange (ticker
symbol: IFX) and in the USA on the over-the-counter market OTCQX
International Premier (ticker symbol: IFNNY).
Further information is available at www.infineon.com
This press release is available online at www.infineon.com/press
Follow us:
twitter.com/Infineon - facebook.com/Infineon - plus.google.com/+Infineon
ABOUT CREE, INC.
Cree is a market-leading innovator of lighting-class LEDs, lighting
products and semiconductor products for power and radio frequency (RF)
applications. Cree believes in better light experiences and is delivering
new innovative LED technology that transforms the way people experience
light through high-quality interior and exterior LED lighting solutions.
Cree's product families include LED lighting systems and bulbs, blue and
green LED chips, high-brightness LEDs, lighting-class power LEDs, power-
switching devices and RF devices. Cree's products are driving improvements
in applications such as general illumination, electronic signs and signals,
power supplies and inverters.
For additional product and Company information, please refer to
www.cree.com.
FORWARD-LOOKING STATEMENTS DISCLAIMER
This press release contains forward-looking statements involving risks and
uncertainties, both known and unknown, that may cause actual results to
differ materially from those indicated. Actual results may differ
materially due to a number of factors, including the risk that the
transaction may be delayed or may not occur; the ability to obtain
regulatory approval or the possibility that such regulatory approval may
result in the imposition of conditions that could cause the parties to
abandon the transaction; the risk that one or more of the conditions to
closing of the transaction may not be satisfied; the possibility that
anticipated benefits of the proposed transaction will not be realized;
potential business uncertainty, including changes to existing business
relationships during the pendency before closing that could affect either
Infineon's or Cree's financial performance; and other factors discussed in
Cree's filings with the Securities and Exchange Commission, including its
report on Form 10-K for the year ended June 28, 2015, and subsequent
filings, or in Infineon's Annual Report 2015.
Cree(R) is a registered trademark of Cree, Inc.
MEDIA CONTACTS
Cree:
Claire Simmons
Cree, Inc.
Corporate Communications
media@cree.com
Infineon:
Bernd Hops
+49 89 234 23888
bernd.hops@infineon.com
Sian Cummings
+1 310 252 7148
sian.cummings@infineon.com
INVESTOR RELATIONS CONTACTS
Cree:
Phone: +1 919 407 7895
investorrelations@cree.com
Infineon:
Phone: +49 89 234 26655
investor.relations@infineon.com
---------------------------------------------------------------------------
14.07.2016 Dissemination of a Corporate News, transmitted by DGAP - a
service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Archive at www.dgap.de
---------------------------------------------------------------------------
Language: English
Company: Infineon Technologies AG
Am Campeon 1-12
85579 Neubiberg
Germany
Phone: +49 (0)89 234-26655
Fax: +49 (0)89 234-955 2987
E-mail: investor.relations@infineon.com
Internet: www.infineon.com
ISIN: DE0006231004
WKN: 623100
Indices: DAX
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange; Terminbörse EUREX
End of News DGAP News Service
---------------------------------------------------------------------------
482303 14.07.2016
DGAP-News: Infineon Technologies AG: INFINEON TO ACQUIRE WOLFSPEED FOR US DOLLAR 850 MILLION IN CASH
| Source: EQS Group AG