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TTM Inks $775M Cash Deal for Anaren to Expand Defense & Aerospace Electronics Portfolio

TTM Technologies (Nasdaq: TTMI) has agreed to buy East Syracuse, New York-based microwave microelectronics provider Anaren from private equity firm Veritas Capital for approximately $775 million cash.

TTM said Sunday the deal will help expand its products portfolio through the addition of Anaren’s radio frequency subsystems and components for aerospace and defense sectors, as well as provide growth opportunities across industrial, automotive and medical end markets.

TTM CEO Tom Edman said the company intends to combine its manufacturing capability with Anaren’s RF engineering experience to deliver new platforms to clients across A&D and commercial markets.

Both companies expect to close the transaction in the first half of 2018, subject to regulatory clearances and other customary closing conditions.

TTM plans to fund the acquisition through existing cash on hand and a Term Loan B add-on worth approximately $700 million and expects the transaction to realize $15 million in pre-tax cost synergies within two years of the deal’s completion.

The Costa Mesa, California-based printed circuit board manufacturer expects the deal to be accretive to non-GAAP earnings per share, non-GAAP operating margins and adjusted earnings before interest, taxes, depreciation and amortization margins.

Barclays and O’Melveny & Myers LLP respectively serve as financial and legal advisers to TTM in the transaction.

Houlihan Lokey (NYSE: HLI) and Evercore (NYSE: EVR) advise Anaren on the deal’s financial aspects, while Skadden, Arps, Slate, Meagher & Flom LLP serves as the company’s legal counsel.

The transaction came three years after Veritas Capital completed its $383 million purchase of Anaren.

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