Acquisition Announcement

On October 14, 2026, the Board of Directors of AXISCADES Technologies Limited (NSE: AXISCADES, BSE: 532395) approved the acquisition of substantially all business assets of ITSJ Group, Inc., a San Jose‑based precision engineering and electronics manufacturer, by XIDA Inc., the U.S. AI‑infrastructure subsidiary of AXISCADES. The press release dated October 15, 2026 confirms the transaction will provide XIDA with an operating base in Silicon Valley and direct supplier positions in two of the fastest‑growing segments of AI hardware: semiconductor‑equipment and data‑centre infrastructure.

Deal Structure and Consideration

The consideration for the asset purchase is capped at US$7.0 million, equivalent to approximately ₹67 crore. Of this amount, US$2.5 million will be paid in cash at completion. The remaining US$4.5 million will be satisfied through XIDA shares that vest over a 30‑month period, together with an earn‑out of up to US$2.0 million linked to achievement of specific customer, revenue and margin milestones. As an asset purchase, all legacy liabilities of ITSJ remain with the seller.

Target Business Profile – ITSJ Group

Founded in 2023, ITSJ Group has quickly become a qualified supplier of sub‑assemblies for semiconductor capital‑equipment makers and of cooling and infrastructure systems for data‑centre operators. The company supplies sub‑systems to two of the world’s top‑five semiconductor‑equipment manufacturers and to a leading hyperscale data‑centre operator, and it currently holds live purchase orders. ITSJ’s capabilities in San Jose include precision CNC machining, printed‑circuit‑board design and assembly, electrical cabinet fabrication, cable and harness assembly, box‑build, and full system integration from prototype through to production.

Strategic Rationale

The acquisition gives XIDA immediate qualified supplier status in both the semiconductor‑equipment and data‑centre supply chains—positions that typically require years to earn. XIDA will combine this U.S. front‑end capability with AXISCADES’ extensive Indian engineering and manufacturing platform, creating a diversified delivery model that enhances resilience to tariffs and evolving global trade dynamics. The deal aligns with XIDA’s focus on the physical layer of AI build‑out, encompassing data‑centre cooling and semiconductor‑equipment sub‑systems, while leveraging AXISCADES’ heritage in electronics and embedded systems.

Management Commentary

Dr. S. Ravi Narayanan, Chairman of AXISCADES Technologies, stated: “AI runs on two things: the tools that make the chips, and the data centres that run them. ITSJ is XIDA's gateway to both — supplier positions in Silicon Valley that take years to earn, ours from day one. We are delighted to welcome Chau and the ITSJ team as we build XIDA into a global AI‑infrastructure company.”

Forward‑Looking Statements

The release contains forward‑looking statements regarding the proposed transaction, its timing, integration plans and expected benefits. These statements are subject to risks and uncertainties, including the execution of definitive agreements, satisfaction of conditions precedent and receipt of required approvals. No obligation is assumed to update these statements.

Disclaimer

The release is for information only and does not constitute an offer or solicitation of securities in any jurisdiction.