Semiconductors device manufacturer

Cree

(CREE) - Get Report

said Monday it would buy privately held

Intrinsic Semiconductor

, a developer of low-defect density silicon carbide substrates, for $46 million.

Under the terms of the agreement, the Durham, N.C.-based company will acquire all of the Intrinsic's outstanding capital stock and options, with about $43.5 million in cash and the rest to be paid through the assumption of Intrinsic's outstanding stock options.

Cree said integration of Intrinsic's technology into Cree's materials product line would accelerate development of larger-diameter, high-quality Silicon carbide wafers, which would enable new high-power semiconductor devices and lower-cost LEDs.

The transaction is expected to be completed during July 2006 and will not have a material impact on Cree's fiscal 2007 earnings. The company also expects to take a one-time charge of about $325,000 in the completion of the deal.

Cree's stock was up 21 cents, or 0.9%, to $23.70 Monday.

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