TTM Technologies (TTMI) M&A announcement summary

Deal rationale and strategic fit

• Acquisition of Epiq Solutions aligns with the strategy to move up the value chain in integrated electronics, expand RF and DSP capabilities, and enhance vertical integration across all end markets.

• Expands addressable opportunities in high-priority defense mission areas, including missile defense, space, communications, signals intelligence, electronic warfare, and ISR.

• Epiq's portfolio complements existing offerings with minimal overlap, enabling a broader product suite and new market opportunities.

• Supports long-term growth strategy by investing in critical technologies for fast-growing markets and enhances business composition and financial model.

• Enables geographic expansion, particularly in Europe, leveraging both companies' relationships with major defense and technology customers.

Financial terms and conditions

• All-cash purchase price of $1.1 billion, subject to customary closing adjustments, funded through committed financing from JPMorgan, Bank of America, and Barclays.

• Expected closing in Q4 2026, subject to regulatory approvals and customary conditions.

• Acquisition represents a 17.4x multiple on expected 2027 adjusted EBITDA, with Epiq's 2027 revenues projected at $160 million and EBITDA margins in the mid-30% range.

• Immediate accretion to adjusted EBITDA margin and accretive to non-GAAP diluted EPS by 2028.

• Estimated total net leverage of 2.3x at close, targeted to reduce to 1.5x–1.7x within 12–18 months.

Synergies and expected cost savings

• Estimated $9 million in combined cost and revenue synergies, including back-office efficiencies and expanded customer reach.

• Synergies expected to grow over time as sales forces and offerings are aligned.

• Transaction expected to strengthen financial model by adding high-margin, long-cycle business and enable rapid de-leveraging over 12–18 months.