Cree Inc. of Durham, N.C., will acquire Cotco Luminant Device Ltd. of Hong Kong, a producer of high-brightness LEDs. Under the terms of the agreement, the former will pay the latter $70 million in cash, along with stock shares valued at $130 million. If the Hong Kong company achieves specific financial goals over two years, it may receive an additional $125 million in stock and/or cash. The acquisition is expected to increase Cree’s annual revenue by 15 to 20 percent, as well as strengthen its presence in China’s solid-state lighting market.