LED light and semiconductor manufacturer Cree Inc. announced Tuesday it has acquired part of Infineon Technologies AG, a German semiconductor producer, for €345 million, or $427.8 million, in an effort to bolster its wireless market operation.

Cree funded the deal through cash and credit.

The company will take over Infineon’s wireless operations in Morgan Hill, California, and Chandler, Arizona, along with locations in China, Sweden, Finland and South Korea. Cree also will acquire approximately 260 Infineon employees in these locations.

The transaction expands Cree’s Wolfspeed business unit, which produces radio-frequency semiconductors intended for multiple energy uses, including industrial and solar energy.

The companies projected that the deal will increase Cree’s sales by approximately $115 million in the next year post-acquisition. The statement also predicted an increase in profits for quarter after the deal closes.

“This is a key element of Cree’s growth strategy and positions Wolfspeed to enable faster 4G networks and the revolutionary transition to 5G,” Cree CEO Gregg Lowe said in the release.

Infineon will maintain control over some of its operations, including its chip card and security division in the Morgan Hill site.

Based in Durham, Cree manufactures semiconductors and lighting products that are used in things like electric vehicles, power supplies, outdoor lighting and video displays.

Cree’s shares sat at $41.81 near close Tuesday, up nearly 10 percent from the previous day’s close.

The filing can be found here.