India, Oct. 19 -- Shares of Cree Inc. (CREE) are gaining nearly 5% on Monday morning after the lighting company announced it agreed to sell its LED Products business unit to SMART Global Holdings, Inc. (SGH) for up to $300 million.
CREE is currently trading at $74.33, up $3.04 or 4.26%, on the Nasdaq.
Cree will receive $50 million in cash payment upon closing and $125 million to be paid upon maturity of a seller note issued by SMART to Cree due August 2023.
Cree will also receive an earn-out payment of up to $125 million based on the revenue and gross profit performance of Cree LED in the first full four quarters post-transaction close, also payable in the form of a three-year seller note.
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