Daktronics completes XDC acquisition and increases Micro LED technology's performance growth target

On December 24, 2025, Daktronics, a world-renowned display manufacturer, officially announced the completion of its strategic acquisition of X Display(referred to as XDC). The transaction covers all of XDC's intellectual property rights, equipment assets and core technology teams. This acquisition focuses on the core aspects of next-generation display technology. Dakota aims to accelerate its own technological iteration and product innovation in the high-end display market by integrating XDC's leading capabilities in the field of massive transfer processes and Micro LEDs.

It is understood that through this transaction, Daktronics will fully acquire XDC's huge transfer process in the field of display applications and proprietary intellectual property rights related to Micro LED manufacturing, which will significantly enhance its technical strength in the fields of large displays and medium commercial displays. Strengthen the supply capabilities of ultra-small pixel pitch display solutions. In addition to intellectual property rights, Daktronics will also receive special precision equipment from XDC for the research and development of Micro LED and Micro IC technology, and recruit 15 senior technicians in related fields to further enrich its R & D team.

As a supplier of large-scale LED video display systems in the United States, Dakota has a long history of development. Since 1968, it has focused on the design and manufacturing of large-scale video displays, electronic scoreboards and programmable display systems, and has long provided high-performance display solutions in sports, commerce, transportation and other fields. However, affected by the global economic downturn, Daktronics 'performance in recent years has fluctuated: after revenue in fiscal year 2024 (as of April 2024) reached a recent peak of US$818 million, revenue in fiscal year 2025 (as of April 2025) fell 7.5% year-on-year to US$757 million, net profit turned from profit to loss.

After entering the 2026 fiscal year, Daktronics 'performance showed a strong recovery trend, achieving profits exceeding expectations for two consecutive quarters. In the latest second quarter, the company's revenue increased by 10% year-on-year to US$229 million. During this period, multiple large-scale stadium display installation projects were completed, and the backlog of orders increased significantly by 35.8% year-on-year to US$320 million. Based on the recovery in performance, Daktronics has set clear long-term growth goals: to achieve an operating profit margin of 10% to 12% in the future, a return on investment capital of 17% to 20% in fiscal year 2028, and an average annual growth rate of 7% to 10%.

In order to achieve growth goals, Daktronics continues to increase investment in innovative products and services and expand manufacturing capabilities. The acquisition of XDC and the strengthening of Micro LED technology layout are key steps in the implementation of its strategy. It is worth noting that Daktronics and XDC have a long basis for cooperation: XDC originated from the spin-off of micro-transfer technology company X-Celeprint. Since its establishment, it has been deeply involved in the Micro LED field and has thousands of core patents related to huge transfers around the world; In 2020, Daktronics participated in XDC's Series A strategic investment and jointly developed small-pitch LED display products.

XDC's core competitiveness lies in its unique Micro Transfer Printing technology, which uses intermolecular Van der Waals forces to adsorb thousands of Micro LED chips at a time and accurately transfer them to the target substrate. This process not only has the advantages of high speed and high precision, but also can effectively process microchips that are easily damaged, providing core support for large-scale mass production of Micro LEDs. Previously, XDC has signed technology licensing agreements with many display manufacturers around the world such as Daktronics and Ronda to promote the industrialization of Micro LED technology.

Looking to the future, after integrating XDC's Micro LED production technology and patents, Daktronics 'Micro LED display production efficiency and product quality are expected to be greatly improved. Especially in the field of medium-sized displays, XDC technology will help Dakota improve the brightness and visibility of outdoor displays, while flexibly providing cost-effective solutions for small-batch application scenarios, enhancing the stability and flexibility of the supply chain. In addition, Dakota also plans to expand its massive transfer technology licensing business to further enrich its revenue structure.

In addition to its technical layout, Daktronics is also actively expanding its production capacity and plans to open a new factory in Saltillo, Mexico in April 2026. After being put into production, it will further enhance its LED display production capacity. The industry believes that with the completion of the XDC acquisition and the landing of a new factory in Mexico, Daktronics will have dual advantages of new technology + new production capacity, injecting strong impetus into continued performance growth and helping it seize the lead in the competition in the high-end display market.