Cree, a manufacturer of semiconductor materials and electronic devices made from silicon carbide (SiC), will acquire privately held Intrinsic Semiconductor. Intrinsic is active in research and development of low defect density SiC substrates. Under the terms of the agreement, Cree will acquire all of the outstanding capital stock and options based on a valuation of $46 million, with approximately $43.5 million to be paid in cash for the outstanding stock and the remainder to be paid through the assumption of outstanding stock options.Integration of Intrinsic`s technology into Cree's materials product line should accelerate development of larger- diameter, high-quality SiC wafers, which should enable new high-power semiconductor devices and lower-cost LEDs.

Intrinsic was founded in 2002 in Dulles, Virginia. The company acquired Bandgap Technologies and AMDS in 2004, both of which were dedicated to either SiC crystal growth or SiC device development.