Energy-efficient lighting maker Cree, Inc. (Nasdaq: CREE) announced on Wednesday that it was buying Ruud Lighting, Inc., a leader in LED outdoor lighting, for $525 million.

“Cree is taking another bold step in leading the LED lighting revolution, creating a company that has an unrivaled focus and commitment to driving LED lighting adoption,” Chuck Swoboda, chairman and chief executive of Cree, said in a statement.

The deal actually cost more than $525 million initially -$583 million in cash and stock plus another $85 million to pay off Ruud debt – but tax benefits will lower Cree’s investment, the company said.

The deal includes $372 million in cash and another $211 million in stock.

Cree also is paying $85 million to retire Ruud debt.

The total cost of the deal will be offset by $143 million in future tax benefits based on how the deal was structured, Cree said.

Ruud Lighting’s chairman and chief executive Alan Ruud said joining Cree was the right thing to do to build on the company’s leadership position.

Ruud founded the company in his garage in 1982.

The company sells products globally through a network of distributors.

Ruud Lighting will continue to be based in Racine, Wis., and will operate as a subsidiary of Cree’s lighting business.

Cree is headquartered in Durham.

Read the full announcement here.

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