Cree expects to receive an initial cash payment of $225 million, subject to purchase price adjustments, and has the potential to receive a targeted earn-out payment of approximately $85 million based on an adjusted EBITDA metric for Cree Lighting over a 12-month period beginning two years after the transaction closes. The agreement continues Cree's previously announced strategy to create a more focused emiconductor company, providing growth capital for Wolfspeed, its core power and RF business, and equips Cree with additional resources to expand its semiconductor operations. The deal also enables Cree Lighting to gain additional global focus, channel support and investment as it becomes a growth engine for Ideal. Ideal is a fourth-generation, family-owned, growing global company, serving as a market leader in electric power control and management.