- Epiq is a Veritas Capital portfolio company based in Rolling Meadows, Illinois
- JPMorgan, Bank of America and Barclays have committed financing for the all-cash purchase
- TTM estimates net leverage of 2.3x at closing
TTM Technologies has signed a definitive agreement to acquire Epiq Design Solutions for roughly $1.1 billion in cash. TTM unveiled the transaction on Monday.
Epiq builds open-architecture, AI-enabled software-defined radios, or SDRs, along with high-performance radio frequency products and radiation-tolerant space computing hardware. Its products support signals intelligence and electronic warfare missions.
The company was founded in 2009 and is headquartered in Rolling Meadows, Illinois, with additional sites in Frederick, Maryland, and Montreal in Quebec, Canada. Epiq is a portfolio company of Veritas Capital.
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What Does Epiq Bring to TTM’s Defense Portfolio?
TTM said the purchase widens its addressable opportunities in missile defense; geosynchronous-to-low Earth orbit space; communications and signals intelligence; electronic warfare; and intelligence, surveillance and reconnaissance.
The company described Epiq’s offerings as complementary and said the small-form-factor, software-driven products enable full command of the radio frequency spectrum. TTM also cited Epiq’s work on technologies optimized for size, weight and power.
Edwin Roks, president and CEO of TTM, said the acquisition will support the company’s long-term growth plan.
Epiq entered into a partnership with DeepSig in 2024 to integrate OmniSIG machine-learning software into the Matchstiq G-Series and Matchstiq X40 SDR platforms.
How Will TTM Fund the Epiq Acquisition?
JPMorgan, Bank of America and Barclays have committed financing for the transaction, subject to customary conditions.
TTM estimates the synergy-adjusted transaction multiple at 17.4x expected adjusted 2027 EBITDA.
Total net leverage is estimated at 2.3x at closing. TTM expects to bring that figure to a range of 1.5x to 1.7x within 12 to 18 months.
The company reported net leverage of 0.9x at the end of its second quarter.
Guggenheim Securities is TTM’s exclusive financial adviser on the transaction. Polsinelli is serving as the exclusive legal adviser.
What Other Deals Is TTM Pursuing?
TTM has pending agreements to acquire Swiss Technology Group and ILFA, expected to close late in the third quarter. Those deals will mark its entry into Europe.
The company bought Telephonics from Griffon for about $330 million in 2022, adding intelligence, surveillance and communications systems to its aerospace and defense business.
TTM reported second-quarter net sales of $1 billion, up 37 percent year over year. Aerospace and defense accounted for 37 percent of net sales, and total program backlog exceeded $1.7 billion.
