Cree Inc. Acquires Fayettevilles APEI

A global public company recognized as one of the most innovative in the world has reached an agreement to buy a privately held advanced electrics company based in Fayetteville 

Cree Inc., headquartered in Durham, North Carolina, has closed on a deal to acquire Arkansas Power Electronics International Inc., (APEI) the largest company affiliated with the University of Arkansas’ Arkansas Research and Technology Park. 

Cree made the official announcement Thursday morning. Financial terms were not disclosed.

The APEI team will change its name to Cree Fayetteville Inc., according to the news release, and will continue to be based in Fayetteville.

Under the terms of the agreement, Cree will acquire APEI in a merger transaction.

“Joining forces with the market leader in silicon-carbide power gives us an opportunity to commercialize our products faster,” Alex Lostetter, president and CEO of APEI, said in the release. “This ideal combination of chip technology and packaging will give us first-mover advantage, helping us to set the industry standard for power modules.”

APEI, founded in 1997 by Bill Schirmer and Kraig Olejniczak, has about 50 employees who occupy 30,000 SF across three facilities at the UA Tech Park. The company produces and manufacturers high performance electronics for a variety of customers and applications.

Cree, which has 6,800 employees worldwide, is a manufacturer of energy-efficient semiconductor materials, including light-emitting diodes (LEDs). The company was formed in July 1987 and went public in February 1993. In addition to three offices in North Carolina, it has domestic offices in Wisconsin and California, and foreign offices in Sweden, Italy, China, Canada, Germany, Japan and Malaysia.

According to its financial statements, Cree generated revenue of $1.64 billion in 2014. Its customers, according to its website, range from lighting-fixtures makers to defense-related federal agencies.

In March 2013, Cree began offering LED light bulbs (40 watt and 60 watt equivalent) for the consumer market, sold exclusively at Home Depot, as well as indoor and outdoor LED light fixtures and parts that other companies use in LED lights.

Since that initial release, Cree has continued to drive the adoption of LED lighting by expanding its product line of LED light bulbs.

On June 24, the company announced it was restructuring its LED business in the face of a diminished revenue outlook.

Earlier this year, Cree was recognized as one of the Top 50 most innovative companies in the world by Fast Company magazine.