Daktronics Acquires Intellectual Property and Equipment Assets from X Display Company to Expand MicroLED and MicroIC Capabilities

Rhea-AI Summary

Daktronics (NASDAQ: DAKT) announced it acquired intellectual property, specialized equipment and technical expertise from X Display Company Technology Limited to expand its MicroLED and MicroIC capabilities. Daktronics said it has owned an investment in XDC since 2020 and hired 15 key XDC employees to integrate mass-transfer and MicroLED skills. The acquisition gives Daktronics proprietary mass-transfer and MicroLED fabrication IP for ultra-fine pixel pitches, plus equipment for MicroLED/MicroIC development. Management said the move supports product innovation and NPP (narrow pixel pitch) offerings; Futuresource projects the NPP market to reach $12 billion by 2029.

Positive

• Acquired proprietary mass-transfer and MicroLED fabrication IP
• Obtained specialized equipment for MicroLED and MicroIC development
• Hired 15 XDC employees with MicroLED and MicroIC expertise
• Positions Daktronics to expand ultra-fine pixel pitch NPP products
• Supports medium-sized display solutions and supply-chain flexibility
• Aligned with Futuresource NPP market estimate of $12B by 2029

Negative

• None.

Key Figures

XDC employees hired 15 employees Key technical staff integrated from X Display Company

NPP market size $12 billion Expected Narrow Pixel Pitch market by 2029 (Futuresource)

Target year 2029 Forecast horizon for NPP market reaching $12 billion

Investment start year 2020 Year Daktronics began investing in X Display Company

Market Reality Check

$18.91 Last Close

Volume Volume 517,527 is essentially in line with the 20‑day average of 520,554 (relative volume 0.99). normal

Technical Shares at $18.91 are trading above the 200-day MA of $16.55, while sitting 22.42% below the 52-week high and 84.67% above the 52-week low.

Peers on Argus

DAKT slipped 0.69% pre‑news while key peers like CTS, ALNT, ROG and LYTS showed modest gains between 0.65% and 1.33%, indicating the move was more stock‑specific than sector‑driven.

Market Pulse Summary

This announcement highlights Daktronics’ push deeper into MicroLED and MicroIC technologies by acquiring XDC’s IP, equipment, and 15 specialist employees. With the NPP market projected to reach $12 billion by 2029, the move fits a strategy of targeting higher‑performance display segments. Investors may track how quickly these capabilities translate into new large‑format and medium‑sized products, as well as any updates on commercialization milestones and margin impact.

Key Terms

intellectual property technical

"announced the acquisition of the intellectual property (IP), equipment assets"

Intellectual property are legal rights that protect creations of the mind—such as inventions, brand names, designs, software, or secret formulas—giving the owner control over who can use, copy or sell them. For investors, IP is like owning a blueprint or recipe: it can generate steady income through exclusive sales or licensing, boost a company’s competitive edge and valuation, and also create costs or risks if rights must be defended or challenged in court.

microled technical

"MicroLED (Micro Light-Emitting Diode) technology. Daktronics believes that the acquisition"

MicroLED is a type of display technology that uses tiny, individual light-emitting tiles to create images with bright colors, sharp contrast, and wide viewing angles. Because of their efficiency and high quality, microLED screens can provide clearer and more vibrant visuals, which can enhance the appeal and performance of electronic devices. For investors, advancements in microLED technology may signal potential growth opportunities in the electronics and display markets.

micro light-emitting diode technical

"MicroLED (Micro Light-Emitting Diode) technology. Daktronics believes that the acquisition"

A micro light-emitting diode (micro-LED) is a tiny, self-contained light source used as a pixel in high-resolution screens; imagine a TV or phone display made of millions of miniature LEDs instead of one backlit panel. It matters to investors because micro-LEDs can deliver brighter images, lower power use, faster response, and longer life, creating potential market advantage—but high manufacturing complexity and cost mean the technology’s commercial success affects makers’ profit prospects and capital needs.

npp (narrow pixel pitch) technical

"According to Futuresource... the expected NPP (Narrow Pixel Pitch) market"

Narrow pixel pitch refers to displays (usually LED or LCD) where the tiny dots that make up the image are placed very close together, so pictures and text look much sharper even when viewed up close. For investors, it matters because these higher-resolution screens can sell at premium prices, enable new use cases (like control rooms, retail signage and corporate lobbies), and indicate a company’s technological edge and potential for stronger margins and growth.

AI-generated analysis. Not financial advice.

BROOKINGS, S.D., Dec. 23, 2025 (GLOBE NEWSWIRE) -- Daktronics (NASDAQ: DAKT), the leading U.S.-based designer and manufacturer of dynamic video communication displays and control systems for customers worldwide, today announced the acquisition of the intellectual property (IP), equipment assets and technical expertise from X Display Company Technology Limited (XDC), a recognized leader in mass-transfer processes and MicroLED (Micro Light-Emitting Diode) technology.

Daktronics believes that the acquisition will continue to differentiate Daktronics in all segments of its business, and that it represents another step forward in Daktronics’ product innovation strategy, which is designed to accelerate growth and enhance competitive positioning.

MicroLED is a display technology that provides higher brightness, enhanced contrast, greater energy efficiency and a longer lifespan compared with existing technologies like LCD. Daktronics has been investing in XDC since 2020, helping accelerate XDC’s development of best-in-class MicroLED capabilities and applications.

Key acquisition highlights include:

• IP Assets: Daktronics will now own XDC’s proprietary technologies in mass-transfer processes and MicroLED fabrication within the display field of use to enable advanced display solutions with ultra-fine pixel pitches for large-format video walls and medium-sized commercial displays.
• Equipment Assets: Daktronics acquires specialized equipment for the development of displays with MicroLED and MicroIC technology.
• Talent Integration: Daktronics has hired 15 key XDC employees with deep expertise in mass-transfer, MicroLED development and MicroIC design.
  
  

“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 Daktronics Interim President & CEO Brad Wiemann. “It also gives us an experienced team of engineers in the field of MicroLED and MicroIC technologies that we believe reinforces our commitment to technical excellence and innovation.”

According to Futuresource, a global market research and consultancy firm, the expected NPP (Narrow Pixel Pitch) market, which includes a subset of MicroLED, is expected to reach $12 billion by 2029.

What MicroLED provides for the medium-sized display space:

• Higher brightness and improved viewability for current outdoor displays
• Flexibility to develop cost-effective solutions for the lower volume applications
• Stability and flexibility in the supply chain
  
  

“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,” said Wiemann.

About Daktronics
Daktronics helps its customers to impact their audiences throughout the world with large-format LED video displays, message displays, scoreboards, digital billboards, audio systems and control systems in sport, business and transportation applications. Founded in 1968 as a USA-based manufacturing company, Daktronics has grown into the world leader in audiovisual systems and implementation with offices around the globe. Discover more at www.daktronics.com.

Safe Harbor Statement
Cautionary Notice: In addition to statements of historical fact, this news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding Daktronics’ acquisition of XDC’s display business and is intended to enjoy the protection of that act. These forward-looking statements reflect Daktronics’ expectations or beliefs concerning future events. Daktronics cautions that these and similar statements involve risk and uncertainties which could cause actual results to differ materially from our expectations, including, but not limited to, changes in economic and market conditions, management of growth, timing and magnitude of future contracts and orders, fluctuations in margins, the introduction of new products and technology, the impact of adverse weather conditions, increased regulation and other risks described in Daktronics’ SEC filings, including its Annual Report on Form 10-K for its 2025 fiscal year. Forward-looking statements are made in the context of information available as of the date stated. Daktronics undertakes no obligation to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

MEDIA RELATIONS
Justin Ochsner
Public Relations/Marketing
Tel 605-692-0200
Email justin.ochsner@daktronics.com

FAQ

What did Daktronics (DAKT) acquire from X Display Company on December 23, 2025?

Daktronics acquired XDC's intellectual property, specialized equipment assets, and hired 15 key employees with MicroLED/MicroIC expertise.

How does the XDC acquisition affect Daktronics' MicroLED capabilities and product roadmap?

The acquisition adds proprietary mass-transfer and MicroLED fabrication IP plus equipment, intended to accelerate development of ultra-fine pixel pitch NPP displays.

Did Daktronics disclose the purchase price or financial terms for the XDC asset acquisition?

No; the announcement does not disclose any purchase price or financial transaction terms.

How many XDC employees did Daktronics hire and what expertise do they bring to DAKT?

Daktronics hired 15 XDC employees with deep expertise in mass-transfer, MicroLED development and MicroIC design.

What market size does Futuresource project for the NPP segment relevant to Daktronics' acquisition?

Futuresource projects the NPP market, which includes a subset of MicroLED, to reach $12 billion by 2029.