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KippsDeSanto & Co. Advises Arkansas Power Electronics International, Inc. on its Sale to Cree, Inc.

KippsDeSanto & Co. is pleased to announce the sale of our client, Arkansas Power Electronics International, Inc. (“APEI” or “the Company”), to Cree, Inc. (“Cree”).  APEI develops, designs, and manufactures high performance power electronics and wireless systems, including motor drives, inverters, power modules, and DC / DC converters.  APEI has been a recognized industry leader in power modules and power electronics applications.   Based in Fayetteville, AR, APEI sits at the center of the SiC power module market, with a focus on providing high performance modules and systems and driving a market shift from traditional silicon-based power electronics towards SiC components.

We believe this transaction demonstrates several key trends in the electronics M&A environment:

  • Attractiveness of proprietary, differentiated technologies
  • Strategic acquisition to enhance technology depth, gain customer reach, and vertically integrate manufacturing to quickly capitalize on a rapidly growing market
  • Growing demand for high performance, highly durable power electronics components for aerospace, defense, and commercial markets

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives.KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading aerospace / defense and technology companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein

 

PRESS RELEASE

DURHAM, N.C., July 9, 2015 – Cree, Inc. (Nasdaq:  CREE), a market leader in silicon-carbide (SiC) power and RF products  today announced the acquisition of APEI, a global leader in power  modules and power electronics applications. Combining two highly complementary innovators, the acquisition enables Cree’s Power and RF  business to extend its leadership position and help to accelerate the  market for high-performance, best-in-class SiC power modules.

This acquisition strengthens Cree’s market-leading position for SiC power electronics, infusing the Power and RF business with additional  intellectual property and applications expertise at the systems level  from APEI. The companies’ shared mission to deliver the industry’s most  innovative SiC power products has already led to successful  collaboration on multiple government contracts. In 2014, the  co-development of a High-Performance Silicon Carbide-based Plug-In  Hybrid Electric Vehicle Battery Charger on an ARPA-E program resulted in  an R&D 100 award, recognizing the 100 most innovative technology  advancements of the year.

“Adding this expert team of innovators and portfolio of patents will enable us to further disrupt and expand the market,” said Frank Plastina, executive vice president, Cree Power and RF. “Extending our  research and development capabilities with APEI, a leader in wide bandgap power R&D, will help us accelerate delivery of a full spectrum of SiC power modules to meet customer requirements for performance and cost.”

“Joining forces with the market leader in silicon-carbide power gives  us an opportunity to commercialize our products faster,” said Dr.

Alex  Lostetter, president and CEO of APEI. “This ideal combination of chip  technology and packaging will give us first-mover advantage, helping us  to set the industry standard for power modules.”

The APEI team, now Cree Fayetteville, Inc., will continue to be based  in Fayetteville, AR., and will operate as part of Cree’s Power and RF  business. Under the terms of the agreement, Cree will acquire APEI in a  merger transaction. The transaction is not targeted to have a material  impact on Cree’s fiscal 2016 earnings.

About Cree, Inc.

Cree is leading the LED lighting revolution and making energy-wasting  traditional lighting technologies obsolete through the use of energy-efficient, mercury-free LED lighting. Cree is a market-leading  innovator of lighting-class LEDs, LED lighting and semiconductor products for power and radio-frequency (RF) applications.

Cree’s product families include LED fixtures and bulbs, blue and green LED chips, high-brightness LEDs, lighting-class power LEDs, power-switching devices and RF devices. Cree® products are driving improvements in applications such as general illumination, electronic  signs and signals, power supplies and solar inverters.

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