Cree, Inc. recently announced the signing of a definitive agreement to acquire privately-held LED Lighting Fixtures, Inc. (LLF) for approximately $77 million, plus up to an additional $26.4 million over a three-year period.

LLF is developing LED lighting retrofit products and developed a viable, energy-efficient LED down light for general illumination. This award-winning product is being used in commercial and residential applications, and is based on the combination of Cree's lighting-class XLamp LEDs and LLF's patented color-mixing technology that produces both very high efficiency and superior color quality.

In a statement released by the company, Cree said the acquisition will expand its market opportunity by providing direct access to the lighting market. It will enable Cree to drive retrofit solutions to convert existing lighting infrastructure to energy-efficient lighting and to accelerate the adoption of LED lighting.

With this acquisition, Cree's business will encompass LED chips, components and lighting solutions.

Under the terms of the agreement, Cree will acquire LLF for approximately $77 million in combination of cash and stock, to be determined at closing. For the stock portion, the number of shares will be based on the average Cree closing share price over the last 20 trading days, which is $28.32 per share.

Cree has also agreed to pay up to $26.4 million of additional consideration tied over the next three calendar years to new product milestones and key-employee retention.

The transaction is targeted to close in early March 2008.

LLF will be renamed Cree LED Lighting Solutions. Neal Hunter, chairman and CEO of LLF and Cree co-founder, will rejoin Cree as president of Cree LED Lighting Solutions.

Founded in 2005, LED Lighting Fixtures, Inc. (LLF) is a privately held company headquartered near Research Triangle Park, N.C. Its mission is to accelerate the adoption and evolution of LEDs into high-volume general lighting applications so that consumers can realize lower energy and maintenance costs.