Cree (Nasdaq: CREE) closed Monday on its acquisition of LED Lighting Fixtures, a deal that could top $100 million if all stipulations are met.

Cree paid $16.45 million in cash to the owners of privately held LLF, which was founded by several former Cree employees. The deal also included 1.85 million shares of Cree stock, bringing the value of the transaction to more than $77 million.

Up to $26.4 million will be paid to LLF owners over the next three years if key management, such as former Cree Chairman Neal Hunter, and new product milestones are met. Hunter was among Cree’s original founders in 1987.

LLF, which was venture backed, will operate as a division in Cree called Cree LED Lighting Solutions. Hunter will lead that division.

The deal is a key part of Cree’s strategy to capitalize on opportunities in light emitting diodes as replacement for conventional lighting. LEDs are more costly but consume less energy, produce less heat and last longer than other forms of lighting.

"The new Cree LED Lighting Solutions team is delivering industry-leading LED lighting products and working to set the standard for 21st century energy-efficient lighting," said Chuck Swoboda, chairman and chief executive officer of Cree, in a statement. "We are out to lead the LED lighting revolution and to obsolete the light bulb."

Cree shares closed at $29.63, down $1.27 or 4 percent, on Monday.