Axiscades Technologies Ltd, an engineering and technology solutions provider, has approved in principle a proposed $7-million acquisition of substantially all business assets of US-based ITSJ Group Inc.
The acquisition will be undertaken by XIDA Inc., a step-down subsidiary of Axiscades incorporated in Delaware. The transaction aims to strengthen XIDA’s manufacturing capabilities for semiconductor equipment and artificial intelligence data-centre infrastructure.
Deal includes $2-million earn-out
The proposed consideration comprises $5 million in guaranteed payments, including $2.5 million in cash and $2.5 million in restricted XIDA shares. A performance-linked earn-out of up to $2 million will take the total consideration to $7 million.
The transaction involves an asset purchase rather than a share acquisition. ITSJ will not become a subsidiary of Axiscades or XIDA.
Manufacturing capabilities to expand
The assets include customer and vendor contracts, inventory, equipment, intellectual property, receivables and goodwill. XIDA also plans to offer employment to ITSJ employees.
ITSJ provides precision engineering and electronics manufacturing services, including CNC machining, printed circuit board design and assembly, electrical cabinets, cable and harness assemblies, box builds and system integration.
US presence targets semiconductor demand
The acquisition is intended to establish a US-based design-to-build manufacturing platform serving global semiconductor equipment manufacturers and a hyperscale data-centre operator.
ITSJ’s capabilities in San Jose, California, are expected to complement XIDA’s engineering operations in India. The company plans to scale the acquired business using XIDA’s capital, systems and management expertise.
Completion targeted for March 2027
ITSJ reported revenue of $3.47 million, equivalent to approximately ₹33 crore, for the calendar year ended December 2025. Its accounts are unaudited, as it is a small enterprise.
The Asset Purchase Agreement is expected to be executed by November 30, 2026, subject to pre-signing conditions. Completion is targeted by March 31, 2027, subject to fulfilment of the conditions precedent.