TTM Technologies buys Epiq Design Solutions for $1.1 billion in cash deal
TTM Technologies is acquiring Epiq Design Solutions for $1.1 billion to expand its defense and space electronics portfolio. The all-cash deal, financed by major banks, targets immediate EBITDA margin accretion and EPS growth in 2028. Post-close leverage is expected at 2.3x, with plans to reduce it to 1.5x-1.7x within 18 months.
*this image is generated using AI for illustrative purposes only.
TTM Technologies Inc. (NASDAQ: TTMI) announced on August 17, 2026, that it has entered into a definitive agreement to acquire Epiq Design Solutions LLC from an affiliate of Veritas Capital for approximately $1.1 billion in an all-cash transaction. The acquisition strengthens TTM’s integrated electronics business and advances its vertical integration strategy across land, air, sea, and space markets. Epiq is a provider of open-architecture, AI-enabled software-defined radios (SDRs), high-performance radio frequency products, and radiation-tolerant space computing solutions.
Veritas Capital, through its Vantage strategy, is selling Epiq to enhance TTM’s capabilities in mission-critical signals intelligence and electronic warfare applications. The transaction is subject to customary regulatory conditions and closing adjustments, with expected closure by the end of 2026. JPMorgan, Bank of America, and Barclays have secured committed financing for the deal, subject to customary conditions. Guggenheim Securities, LLC serves as the exclusive financial advisor, while Polsinelli PC acts as the exclusive legal adviser.
Financial Impact and Leverage
TTM estimates the synergy-adjusted transaction multiple at 17.4x expected Adjusted 2027 EBITDA, assuming run-rate EBITDA synergies of $9 million. The company projects the acquisition will be immediately accretive to Adjusted EBITDA margin and accretive to Non-GAAP Diluted EPS during 2028. As of the second quarter ending June 29, 2026, TTM reported $507.9 million in cash and cash equivalents.
| Metric: | Value |
|---|---|
| Purchase Price: | $1.1 billion (all-cash) |
| Transaction Multiple: | 17.4x expected Adjusted 2027 EBITDA |
| Expected Net Leverage: | 2.3x post-close |
| Target Leverage Range: | 1.5x to 1.7x within 12-18 months |
| Synergy Assumption: | $9 million run-rate EBITDA |
At the close of the transaction, TTM estimates total net leverage will stand at 2.3x. Management expects to reduce this leverage to within the range of 1.5x to 1.7x within 12 to 18 months. The company stated that sufficient capital remains available to invest in other strategic growth opportunities across its end markets.
Strategic Rationale and Portfolio Expansion
The acquisition supports TTM’s strategy to drive long-term sustainable results by expanding its addressable opportunities in high-priority defense mission areas, including Missile Defense, GEO-to-LEO Space, Communications, Signals Intelligence, Electronic Warfare, and Intelligence, Surveillance and Reconnaissance. Epiq’s technologies are optimized for size, weight, and power, rooted in open architectures supporting both defense and commercial markets.
This move complements TTM’s broader investment program:
- Advanced Interconnect: Committed to $1.2 billion in total expected investment from 2025-2029 for Data Center & Networking capacity.
- Aerospace & Defense: Over $130 million invested in the Syracuse Diamond facility for Ultra-HDI solutions.
- U.S. Manufacturing: Planned investment of over $400 million through 2029 to support growth amid surging munitions demand.
- Innovation: Planned $50 million investment for the TTM Innovation Center in Eau Claire, Wisconsin.
- Geographic Expansion: Planned acquisitions of Swiss Technology Group and ILFA, expected to close in late Q3, mark TTM’s expansion into Europe.
What the Numbers Show
The financing structure indicates a reliance on debt to fund the immediate acquisition while targeting rapid deleveraging. With a projected post-close leverage of 2.3x and a target reduction to 1.5x-1.7x within 12-18 months, TTM must generate significant free cash flow or achieve the estimated $9 million in run-rate synergies to meet its balance sheet targets without diluting equity or raising additional capital in the near term. The 17.4x multiple suggests a premium valuation for Epiq’s specialized technology portfolio, justified by the expected margin accretion and strategic entry into software-defined radio markets. TTM Technologies shares were trading up 1.43% at $138.00 at the time of publication.
How will TTM Technologies balance the capital requirements for this $1.1 billion acquisition with its previously announced $1.2 billion investment in Data Center & Networking capacity through 2029?
What specific regulatory hurdles might delay the closing of the Epiq acquisition beyond the expected end of 2026, given the sensitive nature of signals intelligence and electronic warfare technologies?
Can TTM realistically achieve its target leverage reduction to 1.5x-1.7x within 18 months without issuing new equity or facing constraints on future M&A activity?
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