RTTNews | Oct 19, 2020 10:22AM EDT

10:21 Monday, October 19, 2020 (RTTNews.com) - 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.

Read the original article on RTTNews ( https://www.rttnews.com/3137215/stock-alert-cree-jumps-5-on-sale-of-led-products-biz.aspx)

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