Daktronics, Inc. announced the acquisition of the intellectual property, equipment assets, and technical expertise of X Display Company Technology Limited (XDC). The deal adds a portfolio of MicroLED and MicroIC technologies, along with 15 key XDC employees who specialize in mass‑transfer processes and MicroLED fabrication, to Daktronics’ existing LED display platform.
The acquisition is positioned to strengthen Daktronics’ competitive moat in the narrow‑pixel‑pitch (NPP) market, which is projected to reach $12 billion by 2029. By incorporating XDC’s proprietary mass‑transfer processes and MicroLED expertise, Daktronics aims to accelerate the launch of next‑generation large‑scale NPP displays and create a new revenue stream in medium‑size display applications.
Daktronics’ recent financial performance provides context for the strategic importance of the deal. FY2025 sales fell to $756.5 million from $818.1 million in FY2024, and operating income dropped to $33.1 million from $87.1 million. Q4 FY2025 saw an operating loss of $1.7 million versus a $19.4 million profit in Q4 FY2024, while Q2 FY2026 reported an operating margin of 9.4%, up from 7.6% in Q2 FY2025. The acquisition aligns with Daktronics’ transformation agenda to achieve 10‑12% operating margins by FY2028.
Brad Wiemann, Daktronics’ interim president and CEO, said the move “further strengthens our competitive position and will allow us to provide current and future customers globally with the next generation of display technology.” He added that integrating the new technical talent will boost the company’s engineering strength and support the rollout of higher‑resolution, energy‑efficient displays.
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