The Big Picture: Not One, But Three Grey Rhinos
It’s Only Common Sense: Make Your ‘Account’ the Whole Organization
Dan’s Biz Bookshelf: ‘Building a Story Brand 2.0’
TTM Technologies, Inc., a leading global manufacturer of technology products, including mission systems, radio frequency (RF) components, RF microwave/microelectronic assemblies, and technologically advanced interconnect products, including printed circuit boards (PCBs) and substrates, announced that it has completed its acquisition of EPIQ Design Solutions LLC (Epiq), a premier provider of open-architecture, AI-enabled software-defined radios (SDRs), high-performance RF products and radiation-tolerant space compute solutions supporting mission-critical signals intelligence and electronic warfare applications.
Through the close of the transaction, TTM adds a talented management and operational team focused on critical technologies in the long-cycle Aerospace & Defense end market, with strategic and complementary capabilities that TTM expects will bolster TTM’s long-term growth strategy. The addition of Epiq adds:
- Highly complementary technology offerings that enable full command of the RF spectrum through small-form-factor, software-driven solutions;
- Accelerated momentum to TTM’s “up the chain” vertical integration strategy across land, air, sea, and space domains through multiple defense and commercial expansion opportunities;
- Cutting edge technologies optimized for size, weight, and power (SWaP) rooted in open architectures supporting defense and commercial markets
Financial contributions from the newly acquired Epiq business are expected to be immediately accretive to adjusted EBITDA, moderately dilutive to non-GAAP diluted EPS in 2027, and accretive to non-GAAP diluted EPS in 2028.
“The completion of the Epiq acquisition is an exciting moment for TTM as we welcome a very strong management team and a profitable, well-established business that provides innovative capabilities for our A&D customers and bolsters our overall technology portfolio,” said Edwin Roks, President and Chief Executive Officer of TTM Technologies.
Terms of the Transaction & Financing
The purchase of Epiq was completed as an all-cash transaction for $1.1 billion, subject to certain customary adjustments at closing. TTM funded the purchase price, including all related fees and adjustments, from (i) a portion of the proceeds of borrowings from a $300 million incremental senior secured term loan A and $800 million incremental senior secured term loan B and (ii) a portion of the proceeds from the previously disclosed completed offering of TTM’s 6.750% senior notes due 2034. The closing of the incremental term loans occurred concurrently with the completion of the Epiq acquisition.
Guggenheim Securities, LLC served as the exclusive financial advisor and Polsinelli PC served as exclusive legal adviser to TTM for the acquisition of Epiq.
