1. Daktronics acquires XDC's IP and technology for MicroLED development. 2. Acquisition enhances Daktronics' competitive position in display technology. 3. MicroLED technology promises higher brightness and energy efficiency. 4. Narrow Pixel Pitch market projected to reach $12 billion by 2029. 5. Integration of XDC's talent strengthens Daktronics' innovation capabilities.
FAQ
Why Bullish?
The acquisition positions DAKT to capitalize on a growing and lucrative market, potentially boosting revenues. Historical context shows similar acquisitions have led to stock price increases due to expanded product offerings.
How important is it?
This acquisition significantly enhances Daktronics' capabilities and market position, suggesting long-term revenue growth potential.
Why Long Term?
This acquisition not only boosts current offerings but also positions DAKT favorably as market demands evolve towards MicroLED technologies.
Daktronics Expands Capabilities with Acquisition of X Display Company
On December 23, 2025, Daktronics (NASDAQ: DAKT), a prominent designer and manufacturer of dynamic video communication displays, announced its acquisition of intellectual property (IP), equipment assets, and technical expertise from X Display Company Technology Limited (XDC). This strategic move aims to enhance Daktronics' position in the rapidly evolving display technology market.
Details of the Acquisition
This acquisition is a significant step in Daktronics’ ongoing product innovation strategy, designed to foster growth and improve competitive positioning. The integration of XDC’s capabilities bolsters Daktronics’ offerings in the MicroLED (Micro Light-Emitting Diode) technology sector, providing advantages such as:
- IP Assets: Ownership of XDC's proprietary technologies in mass-transfer and MicroLED fabrication.
- Equipment Assets: Specialized equipment for developing advanced displays using MicroLED and MicroIC technology.
- Talent Integration: Hiring of 15 key employees from XDC with extensive experience in mass-transfer and MicroLED development.
Implications for Daktronics and the Display Market
Brad Wiemann, Interim President & CEO of Daktronics, expressed confidence that this acquisition will solidify their competitive position and expand the technology available to customers. “We believe this move further strengthens our competitive position and will allow us to provide current and future customers globally with the next generation of display technology,” said Wiemann.
This acquisition is timely, as Futuresource, a global market research consultancy, forecasts that the NPP (Narrow Pixel Pitch) market, which includes a subset of MicroLED solutions, is projected to reach $12 billion by 2029. MicroLED technology enables:
- Higher brightness and improved visibility for outdoor displays
- Cost-effective solutions for lower volume applications
- Enhanced stability and flexibility in the supply chain
Wiemann noted, “This positions Daktronics to advance our large-scale NPP product offerings and provide a pathway to service smaller volume display opportunities with medium-sized display solutions.”
About Daktronics
Founded in 1968, Daktronics has established itself as a leader in audiovisual systems and implementation. The company serves customers across a variety of sectors, including sports, business, and transportation, offering large-format LED video displays, message displays, scoreboards, digital billboards, and audio systems. For more information, visit www.daktronics.com.
Forward-Looking Statements
This announcement contains forward-looking statements that reflect Daktronics’ expectations regarding future events, including risks and uncertainties that may cause actual results to differ materially from these expectations. Daktronics does not undertake any obligation to update or revise these statements as new circumstances arise.
Contact Information
For media inquiries, please contact:
Justin Ochsner
Public Relations/Marketing
Tel: 605-692-0200
Email: justin.ochsner@daktronics.com