- TTM has added software-defined radios, RF equipment and radiation-tolerant computing technologies
- The company expects Epiq to contribute to adjusted EBITDA immediately
- TTM funded the transaction with a $300M Term Loan A and an $800M Term Loan B
TTM Technologies has acquired Epiq Design Solutions in a $1.1 billion all-cash transaction. TTM said Wednesday the deal will expand its aerospace and defense portfolio.
What Capabilities Does Epiq Bring to TTM?
Epiq’s portfolio features software-defined radios, radio frequency equipment and radiation-tolerant space computing technology designed for signals intelligence and electronic warfare. Built around open architectures and optimized for low size, weight and power constraints in defense and commercial markets, these capabilities will join TTM alongside Epiq’s management and operations team.
How Did TTM Finance the Acquisition?
TTM financed the $1.1 billion purchase with proceeds from new debt and its previously disclosed senior notes offering. The new borrowing consisted of a $300 million incremental senior secured Term Loan A and an $800 million Term Loan B. The company said the incremental term loans closed alongside the deal. It also used proceeds from its 6.750 percent senior notes due in 2034 to fund the purchase.
TTM had previously disclosed committed financing from JPMorgan, Bank of America and Barclays for the acquisition.
What Does the Acquisition Add to TTM?
TTM said the Epiq deal accelerates its vertical integration strategy, with new growth avenues in defense and commercial markets spanning land, air, sea and space.
The company expects Epiq to contribute to its adjusted EBITDA right away. It anticipates a moderately dilutive impact on diluted earnings per share not calculated under generally accepted accounting principles in 2027, followed by an accretive impact in 2028.
The acquisition builds on TTM’s previous expansion in aerospace and defense, including its $330 million purchase of Telephonics in 2022, which added intelligence, surveillance and communications systems to the company’s portfolio.
TTM has also been expanding its defense electronics manufacturing footprint. In June, it announced the opening of a $130 million Ultra-High-Density Interconnect printed circuit board manufacturing facility in Syracuse, New York.
