TTM Technologies Buys Epiq Solutions for $1.1B to Boost Defense RF Capabilities
Tue, August 18, 2026 at 12:01 PM GMT+3 5 min read
Key Points
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TTM Technologies agreed to acquire Epiq Solutions for $1.1 billion in cash, financed through debt, with closing expected in the fourth quarter of 2026 pending regulatory approval.
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The deal expands TTM's radio-frequency and digital signal-processing portfolio across defense applications including communications, radar, electronic warfare, missile defense, GPS and low-Earth-orbit space. Epiq is expected to generate about $160 million in 2027 revenue with mid-30% EBITDA margins.
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TTM expects roughly $9 million in annual synergies, immediate adjusted EBITDA-margin accretion and non-GAAP EPS accretion in 2028, while projecting leverage will decline from about 2.3x at closing to 1.5x–1.7x within 12–18 months.
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TTM Technologies (NASDAQ:TTMI) said it has agreed to acquire Epiq Solutions in an all-cash transaction valued at $1.1 billion, expanding its radio-frequency and digital signal processing capabilities for aerospace, defense and communications applications.
The company expects the transaction to close in the fourth quarter of 2026, subject to regulatory approvals and customary closing conditions. TTM said it will finance the acquisition through borrowings and has received commitment letters from JPMorgan, Bank of America and Barclays.
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President and Chief Executive Officer Edwin Roks described the deal as part of TTM's strategy to move "up the chain" into more integrated electronics and higher-value product solutions. He said Epiq adds technology and products with little to no overlap with TTM's existing portfolio.
Expanded RF and DSP Capabilities
Roks said the acquisition would enable TTM to serve the RF spectrum from 2 megahertz to 40 gigahertz, spanning components, modules, subsystems and systems. The combined capabilities are intended for applications including military and security communications, surveillance, radar, electronic warfare, low-Earth-orbit space, missile defense, and GPS positioning, navigation and timing.
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TTM has built RF capabilities through organic development and acquisitions including Anaren and Telephonics, Roks said. Epiq's portfolio is particularly complementary in communications, GPS, LEO space and electronic-warfare applications, while TTM has existing strengths in areas such as radar and surveillance.
"This transaction supports the growth strategy we have been executing against and moves TTM further up the chain," Roks said.
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During the question-and-answer session, management said Epiq's business is supported by more than 10 programs and several large defense-sector customers. Chief Financial Officer Dan Boehle identified Rivet Joint, the MQ-9 Reaper, other air-based and air-defense radar systems, and radome applications among Epiq's key programs.
Roks said Epiq's top 10 programs account for about 45% of its expected revenue. Its customer base includes companies such as L3Harris, BAE Systems, RTX and Rohde & Schwarz, according to management. Boehle said only one Epiq customer represents more than 10% of revenue.
Financial Outlook and Expected Synergies
TTM said Epiq is expected to generate approximately $160 million of revenue in 2027 and has EBITDA margins in the mid-30% range. Boehle corrected an earlier statement during the call, clarifying that the $160 million figure applies to 2027 rather than 2026.
The acquired business is experiencing double-digit annual revenue growth, at a rate somewhat above TTM's current aerospace and defense growth rate, Boehle said. Management expects the transaction to be immediately accretive to adjusted EBITDA margins and accretive to non-GAAP diluted earnings per share in 2028.
On a synergy-assisted adjusted basis, TTM estimates the purchase price represents a multiple of 17.4 times expected 2027 adjusted EBITDA. The company expects approximately $9 million in run-rate synergies from a combination of cost and revenue opportunities, including back-office efficiencies, expanded customer access and technology-related cross-selling.
TTM expects net leverage of about 2.3 times at closing and projects that it can reduce leverage to between 1.5 times and 1.7 times within 12 to 18 months, returning to its stated target range of 1.5 times to 2 times.
Broader Growth Investment Plans
The acquisition announcement followed a strong operating update from TTM. Roks said the company generated more than $1 billion in second-quarter revenue, setting a record, and raised its full-year revenue outlook to approximately $4.4 billion. He cited a $1.7 billion program backlog and record proposal activity in aerospace and defense, as well as better-than-expected performance in medical, industrial, instrumentation and automotive markets.
TTM said it has invested or committed more than $1.2 billion toward capacity expansion between 2025 and 2029. Those investments include multi-chip module offerings for commercial data-center and networking markets, a Syracuse facility for ultra-high-density interconnect solutions in aerospace and defense, and a planned innovation center in Eau Claire, Wisconsin.
The company is also pursuing European expansion. Roks said TTM continues to expect its proposed acquisitions of Swiss Technology Group and ILFA GmbH to close late in the third quarter, subject to required regulatory processes.
While management said it continues to monitor additional acquisition opportunities, Roks said TTM does not currently have a clear view of another acquisition the size of Epiq. The company plans to focus on completing its smaller European transactions, integrating Epiq and continuing organic investments, including in data center and networking capacity.
About TTM Technologies (NASDAQ:TTMI)
TTM Technologies, Inc is a leading global manufacturer of printed circuit boards (PCBs) and related electronic components. The company's product portfolio spans rigid, flexible and rigid-flex circuit boards, as well as advanced substrates, backplanes, hybrid circuits and integrated antenna modules. In addition to PCB fabrication, TTM offers comprehensive system‐level services, including design support, surface mount technology (SMT) assembly, cable and wire harness assembly, and complete box-build solutions to address end-to-end customer requirements.
Serving a broad array of end markets, TTM Technologies supports customers in the communications, computing, automotive, aerospace and defense, industrial, and medical sectors.
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The article "TTM Technologies Buys Epiq Solutions for $1.1B to Boost Defense RF Capabilities" was originally published by MarketBeat.
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