Cree LED has a brand new proprietor. In a press launch issued by Penguin Options on November 4, 2026, the American know-how firm stated it has signed a definitive settlement to promote its LED enterprise to personal fairness agency Transom Capital Group. Penguin calls the deal one other milestone in its transformation right into a pure information middle AI infrastructure options firm. The announcement follows within the firm’s personal phrases.
Penguin Options, Inc. (“Penguin Options,” “Penguin,” or the “Firm”) (Nasdaq: PENG), an AI manufacturing unit platform firm, introduced that it has entered right into a definitive settlement to promote its Cree LED enterprise (“Cree LED”) to Transom Capital Group (“Transom”), a number one operations-focused center market non-public fairness agency.
The deliberate sale displays Penguin Options’ dedication to creating long-term shareholder worth. This may additional align the corporate’s portfolio, assets and capital allocation priorities with the numerous progress alternatives seen in information middle AI infrastructure and reminiscence.
This elevated focus drives our full-stack AI manufacturing unit platform technique. The technique combines differentiated infrastructure software program, superior reminiscence, computing programs, and end-to-end companies designed to assist prospects speed up deployment, optimize token economics, and maximize return on AI investments.
The transaction positions Cree LED as a standalone LED enterprise below Transom’s possession, permitting Cree LED to construct on its lengthy historical past of innovation, buyer relationships and differentiated LED know-how throughout lighting, shows and specialty purposes.
“Immediately’s announcement marks one other milestone in Penguin Options’ transformation right into a pure information center-centric firm on the intersection of AI infrastructure and reminiscence. Since launching our AI Manufacturing facility platform earlier this yr, we now have accelerated our monetary efficiency, with internet gross sales growing 58% year-over-year within the second half of fiscal 2026, and earnings rising considerably sooner than gross sales, with sturdy progress prospects for fiscal 2027.”
— Kash Shaikh, President and CEO, Penguin Options
Shaikh added:
“The sale of Cree LED additional demonstrates our disciplined execution and permits us to give attention to the numerous progress alternatives we see in AI information facilities. We consider it will allow us to attain sustained worthwhile progress. We’re happy with the Cree LED crew and consider Transom is well-positioned to assist its continued innovation and success.”
— Kash Shaikh, President and CEO, Penguin Options
“Cree LED has a formidable heritage of innovation and a longtime fame within the LED {industry} for high quality merchandise, dependable efficiency, and long-standing buyer relationships world wide. We see a big alternative to leverage our operational experience and assets to construct on this basis and place Cree LED for long-term success as an impartial firm. We look ahead to partnering with the Cree LED crew because the enterprise enters its subsequent chapter.”
— Conor Davenport, Transom Managing Director
Underneath the phrases of the definitive settlement, Trans Am will purchase Cree LED in an all-cash transaction. The transaction is predicted to shut within the first calendar quarter of 2027, topic to the satisfaction of customary closing circumstances.
Lazard Freres & Co. LLC is serving as monetary advisor to Penguin Options, and Latham & Watkins LLP is serving as authorized advisor. Kirkland & Ellis LLP is serving as authorized advisor to Transom.
Penguin Options reaffirms outlook for fiscal 2027
Penguin Options reaffirms its beforehand introduced fiscal yr 2027 monetary outlook as included in its October 6, 2026 earnings name.
This outlook consists of anticipated full-year outcomes from Cree LED representing roughly 10% of the corporate’s complete anticipated fiscal 2027 internet gross sales. The Firm expects to replace its outlook following the closing of the transaction, which is predicted within the first calendar quarter of 2027, to replicate the acquisition and associated monetary influence.
This transaction doesn’t change the corporate’s basic expectations for progress and demand throughout its AI infrastructure and reminiscence companies.
About Penguin Options
Penguin Options is an AI manufacturing unit platform firm. We design, construct, and handle next-generation information facilities for enterprises, sovereign AI initiatives, and neocloud suppliers.
With deep design experience on the intersection of knowledge middle AI infrastructure and reminiscence options, the full-stack AI Manufacturing facility platform combines differentiated infrastructure software program, superior reminiscence, compute programs, end-to-end companies, and industry-leading accomplice applied sciences to assist prospects speed up adoption, optimize token economics, and maximize return on AI investments. Study extra right here penguinsolutions.com.
About Transom Capital Group
Transom is a number one, operations-focused non-public fairness agency that thrives on complexity and focuses on figuring out and unlocking worth within the center market. Based in 2008 and headquartered in Los Angeles, Transom has established a robust observe report throughout financial cycles by using confirmed, operationally centered methods to drive modern outcomes. Transom’s experience spans company carve-outs, financier-owned companies, and different complicated conditions the place pace, flexibility, and precision are required. Supported by a big in-house operations crew, Transom offers personalized options backed by purposeful experience to assist companies understand their full potential.
Transom’s sector-flexible strategy is predicated on sample recognition, worth creation, and disciplined execution. The corporate offers not solely the capital, but in addition the instruments, insights and operational capabilities wanted to speed up efficiency and create long-term worth. For extra data, please go to: www.transomcap.com.
sauce: Penguin Solutions Announces Agreement to Sell Cree LED to Transom Capital Group – Press Launch, Penguin Options, Inc., November 4, 2026
