Is the New and Improved Cree a Buy Today?

SMART will pay as much as $300 million for Cree's LED business, starting with a $50 million cash payment upon closing and $125 million on the maturity of a seller note in August 2023. The deal has been approved by both Cree's and SMART's board of directors and should close in the first calendar quarter of 2021, assuming the transaction clears the usual regulatory hurdles and other closing conditions. SMART is gaining a strong revenue stream with annual sales of roughly $430 million and a respectable gross margin of more than 20%.