Cree Acquires Lighting Firm in China

Cree Inc., a maker of semiconductors and light-emitting diodes, said on Monday that it would acquire privately held Cotco Luminant Device Ltd. for $200 million in stock and cash, Reuters reported.

Hong Kong-based Cotco, a unit of Cotco Holdings Ltd., supplies high-brightness LEDs in China.

The report cites Cree as saying that the deal will provide it with a low-cost manufacturing platform and help it leverage its expertise in light-emitting diode chips and intellectual property.

Cree, whose microchips help run traffic lights and wireless devices, said the deal should boost its earnings per share on a consolidated basis by 5 percent to 10 percent over current First Call estimates for fiscal 2008, and should boost revenue by 15 percent to 20 percent on the same basis.