Key Highlights
- AXISCADES board approves XIDA’s proposed acquisition of ITSJ Group’s business assets.
- The proposed acquisition carries a total consideration of up to US$7 million or approximately ₹67 crore.
- The transaction includes US$2.5 million in cash at completion.
- The remaining consideration includes XIDA shares vesting over 30 months and an earn-out of up to US$2 million.
- ITSJ supplies sub-assemblies to two of the world’s top five semiconductor equipment manufacturers.
- ITSJ also serves a leading hyperscale data centre operator and has existing purchase orders.
- The acquisition would provide XIDA with an engineering and manufacturing base in San Jose, California.
- The transaction is subject to definitive agreements, applicable approvals and other conditions.
AXISCADES Technologies Limited has announced that its board has approved the proposed acquisition of substantially all business assets of ITSJ Group Inc., a precision engineering and electronics manufacturing company based in San Jose, California, through its US-based subsidiary XIDA Inc. The acquisition is aimed at expanding the company’s presence in the artificial intelligence (AI) infrastructure, semiconductor equipment and data centre supply chains.
The board approved the transaction on October 14, 2026, according to the company’s press release dated October 15, 2026. The proposed acquisition would provide XIDA with an operational base in Silicon Valley and access to established supplier relationships with semiconductor equipment manufacturers and a hyperscale data centre operator.
AXISCADES Acquisition Deal Worth Up to ₹67 Crore
The proposed transaction carries a total consideration of up to US$7 million, equivalent to approximately ₹67 crore. The payment structure includes US$2.5 million in cash at completion, while the remaining consideration includes XIDA shares that will vest over 30 months and an earn-out payment of up to US$2 million.
The earn-out component will be linked to the achievement of specified customer, revenue and margin milestones. The transaction is structured as an asset purchase, under which the legacy liabilities of ITSJ will remain with the seller, according to the company.
The proposed acquisition remains subject to the execution of definitive agreements, satisfaction of conditions precedent and applicable approvals. AXISCADES has stated that completion of the transaction is not guaranteed.
ITSJ Provides Access to Semiconductor and Data Centre Supply Chains
Founded in 2023, ITSJ Group operates in precision engineering and electronics manufacturing. The company supplies sub-assemblies to two of the world’s top five semiconductor equipment manufacturers and provides products for a leading hyperscale data centre operator. The press release states that ITSJ has existing purchase orders from customers.
Through the proposed acquisition, XIDA expects to gain access to established customer relationships across semiconductor capital equipment and data centre infrastructure. These segments are relevant to the expansion of AI computing infrastructure, which requires semiconductor manufacturing equipment as well as systems for data centre operations.
The acquisition would allow XIDA to enter these customer supply chains through an established business rather than building the entire supplier base from the beginning.
San Jose Engineering and Manufacturing Capabilities
ITSJ operates an engineering and manufacturing facility in San Jose, California, offering design-to-build capabilities across multiple areas of electronics and precision manufacturing.
Its capabilities include computer numerical control (CNC) precision machining, printed circuit board (PCB) design and assembly, cable and harness assemblies, electrical cabinets, box build and complete system integration. The company supports customers from prototype development through production.
AXISCADES expects these capabilities to strengthen XIDA’s position in semiconductor equipment sub-systems and data centre infrastructure, including cooling-related systems.
XIDA to Combine US Operations with Indian Engineering Capabilities
Following completion of the acquisition, XIDA plans to strengthen its global delivery model by combining its US-based operations with the engineering and manufacturing capabilities of the AXISCADES group in India.
The company expects this operating structure to support delivery capabilities, quality systems and manufacturing scale. It also aims to improve supply-chain resilience amid changing tariff policies and international trade conditions.
The acquisition forms part of XIDA’s strategy to expand its presence in the physical infrastructure supporting AI systems, particularly semiconductor equipment sub-systems, data centre cooling and related electronics technologies.
AXISCADES Management Commentary
Dr. S. Ravi Narayanan, Chairman of AXISCADES Technologies, said the acquisition would provide XIDA with access to supplier relationships across semiconductor manufacturing equipment and data centre infrastructure. He also highlighted the role of the ITSJ team in the company’s plans to develop XIDA into a global AI infrastructure business.
