Cree to Acquire Spectrian Unit

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Cree

(CREE) - Get Report

agreed to acquire

UltraRF

, a division of

Spectrian

(SPCT)

, for about 908,000 common shares and $30 million in cash or an additional $30 million worth of Cree stock.

Based on Cree's Monday closing price of $92, the deal would be valued at about $113.5 million. Shares of Cree recently fell $1.94, or 2.1%, to $90.06 in morning

Nasdaq

trading. Spectrian, which is based in Sunnyvale, Calif., rose 7.4%, or $1.25, to $18.50.

UltraRF makes laterally diffused metal oxide semiconductors and bipolar radio frequency power semiconductors.

Cree, a Durham, N.C., maker of semiconductor materials and devices, also said it will sign a two-year supply agreement with Spectrian under which Spectrian will purchase semiconductor products from Cree. The companies will also sign a one-year joint agreement to develop LDMOS, high linearity and gain driver modules, high efficiency LDMOS power modules, and silicon carbide metal-semiconductor field effect transistor components.

The companies expect to close the deal, which requires regulatory approval, in late December or in January.