Two of the Triangle's most successful home–grown technology companies – Cree and Red Hat – are the subject of takeover speculation.
No wonder. Both are tantalizing targets because they are performing strongly in the recession. More important, they appear to have bright futures.
Larger companies seeking new growth engines see dollar signs when they look at Durham-based Cree, the LED lighting company, and Red Hat, the Raleigh open–source software company.
"It speaks to their innovation, their products and maybe even their business model," said Steve Nelson, a venture capitalist of the Wakefield Group, of the buzz surrounding the companies. "It speaks to having a really strong executive team ... and to their growth and growth potential."
Cree's revenue rose 24 percent to $147.6 million for its fiscal second quarter, ending Dec. 28 – better than analysts expected. Red Hat's revenue rose 18 percent to $166.2 million in its fiscal fourth quarter, ending Feb. 28, and Red Hat projects double–digit growth in the current fiscal year.
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