- The purchase will add thermal imaging and laser optics to TTM’s offerings
- TTM plans to fund the deal with cash on hand, future cash flow and its revolving credit facility
- The purchase agreement follows TTM’s $1.1 billion acquisition of Epiq Design Solutions
TTM Technologies seeks to broaden its defense and industrial offerings with thermal infrared imaging and laser optics through an approximately $650 million cash purchase of MKS Inc.’s Ophir Optics unit. The Santa Ana, California-based manufacturer disclosed the definitive purchase agreement Monday.
What Does Ophir Optics Add to TTM’s Portfolio?
Ophir Optics designs and produces precision optical components and assemblies for thermal imaging and laser systems used by military, homeland security and industrial customers. Its products serve land, air, sea and uncrewed platforms. Its work runs from early design through camera integration and final testing. The business has production sites in Israel and Romania.
Edwin Roks, TTM president and CEO, said the optics line adds “another important modality” to the company’s product mix and advances its long-term growth plan. He cited rising surveillance demand and wider industrial use of lasers as market drivers.
The agreement excludes MKS’ separately run Ophir Instruments laser characterization unit and the Ophir brand name.
How Will TTM Pay for the Ophir Optics Deal?
TTM plans to cover the purchase with existing cash, expected cash flow and draws on its revolving credit facility. The same sources will fund a previously announced $400 million investment to expand capacity in Asia.
The price is about 10.3 times Ophir Optics’ projected fiscal 2027 adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, excluding synergies. TTM expects the deal to lift both its non-GAAP diluted earnings per share and its adjusted EBITDA margin upon closing.
The company expects to finalize the transaction during the second quarter of 2027, pending regulatory approvals and government consents and permits. Citi is TTM’s sole financial adviser. Polsinelli and Arnon, Tadmor-Levy are providing legal counsel.
How Does the Deal Fit TTM’s Defense Growth Strategy?
The Ophir Optics agreement follows TTM’s recently completed $1.1 billion acquisition of Epiq Design Solutions. That deal brought radiation-tolerant space computing, radio frequency gear and software-defined radios that support electronic warfare and signals intelligence missions. TTM paid for it with a $300 million Term Loan A, an $800 million Term Loan B and proceeds from a senior notes offering.
TTM has steadily built out its aerospace and defense business. It acquired Telephonics for $330 million in 2022 and opened a $130 million printed circuit board plant in Syracuse, New York, in June.
