Daktronics (NASDAQ: DAKT) has recently announced its acquisition of intellectual property and equipment assets from X Display Company Technology Limited (XDC), a move that is expected to significantly impact the company's position in the market. The acquisition includes proprietary technologies in mass-transfer processes and microLED fabrication, as well as specialized equipment for the development of displays with microLED and microIC technology. Additionally, Daktronics has brought on board 15 key XDC employees with expertise in mass-transfer, microLED development, and microIC design.
The acquisition is a strategic step forward for Daktronics, as it aims to leverage microLED technology to offer higher brightness, enhanced contrast, greater energy efficiency, and a longer lifespan compared to existing technologies. The company believes that this move will strengthen its competitive position and enable it to provide customers with the next generation of display technology. According to Futuresource, the narrow pixel pitch (NPP) market, which includes a subset of microLED, is expected to reach $12 billion by 2029.
The acquisition is expected to benefit Daktronics in multiple ways, including providing higher brightness and improved viewability for current outdoor displays, flexibility to develop cost-effective solutions for lower volume applications, and stability and flexibility in the supply chain. This positions Daktronics to advance its large-scale NPP product offerings and provide a pathway to service smaller volume display opportunities with medium-sized display solutions.
The market has reacted to these announcements by moving the company's shares 0.0% to a price of $19.00. For the full picture, make sure to review DAKTRONICS INC /SD/'s 8-K report.
