Penguin Solutions has agreed to sell its Cree LED business to Transom Capital Group in an all-cash transaction, the Nasdaq-listed company said on 4 November 2026. Financial terms were not disclosed.
Why Transom Capital Group is buying Cree LED (from Penguin Solutions)
Penguin said the sale sharpens its focus on data centre AI infrastructure and memory. Transom managing director Conor Davenport said the firm sees an opportunity to grow Cree LED as a standalone company.
Deal terms and financing
The sale is for cash, with no price disclosed. Cree LED accounts for about 10% of Penguin's projected fiscal 2027 net sales; Penguin reaffirmed its fiscal 2027 outlook, which includes Cree LED, and will update it after closing.
Regulatory approvals and timing
Closing is expected in the first calendar quarter of 2027, subject to customary closing conditions.
Market context
Transom Capital Group is a middle-market private equity firm.
