TTM Technologies to Acquire Epiq Design Solutions for $1.1B

By Hao Liu • Monday, August 17 13:51 • Permanent Link

TTM Technologies said it has agreed to buy Epiq Design Solutions for about $1.1 billion in cash, adding a business the company says will deepen its position in defense electronics and RF systems.

The deal comes with a projected synergy-adjusted transaction multiple of 17.4 times expected 2027 adjusted EBITDA, based on $9 million of run-rate EBITDA synergies. TTM said the acquisition should be immediately accretive to adjusted EBITDA margin and accretive to non-GAAP diluted EPS in 2028.

At closing, TTM estimates total net leverage of 2.3 times. The company said it expects to bring that down to between 1.5 times and 1.7 times within 12 to 18 months.

The acquisition adds Epiq’s open-architecture, AI-enabled software-defined radios, RF products, and radiation-tolerant space compute systems to TTM’s portfolio. TTM said the deal expands its reach in missile defense, geo-to-leo space, communications and signals intelligence, electronic warfare, and intelligence, surveillance and reconnaissance.

The company also laid out a broader investment program alongside the transaction. It has committed $1.2 billion of expected investment from 2025 through 2029 for data center and networking capacity. It has already invested more than $130 million in its Syracuse diamond facility for ultra-HDI solutions for aerospace and defense customers. It plans to invest more than $400 million through 2029 across U.S. manufacturing facilities as munitions demand rises, and another $50 million for a TTM innovation center in Eau Claire, Wisconsin.

TTM said it also plans acquisitions in Europe, including Swiss Technology Group and ILFA, both expected to close in late third quarter.

Epiq, founded in 2009 and based in Rolling Meadows, Illinois, also operates in Frederick, Maryland, and Montreal. TTM said the acquisition strengthens its vertical integration strategy across land, air, sea and space, while adding a high-margin, long-cycle business to its model. Following these announcements, the company's shares moved -3.24%, and are now trading at a price of $135.46. If you want to know more, read the company's complete 8-K report here.

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