TTM Technologies to Acquire Epiq Solutions to Expand Advanced Technology Offerings

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TTM Technologies, Inc. (TTM), 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 entered into a definitive agreement to acquire 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, for approximately $1.1 billion in an all-cash transaction, subject to customary closing adjustments.

This acquisition reinforces TTM’s Strategy to Drive Long-Term Sustainable Results for Shareholders. TTM continues to balance its portfolio with investments for growth in fast growing markets as demonstrated by:

• Investment in capacity and innovative technology for Advanced Interconnect:
  • Committed to $1.2 billion in total expected investment from 2025-2029 for Data Center & Networking capacity
  • Over $130 million invested in Syracuse Diamond facility for Ultra-HDI solutions for Aerospace & Defense customers
  • Planned investment of over $400 Million through 2029 for growth across U.S. manufacturing facilities as munitions demand surge is expected to add on-going growth in A&D market
  • Planned investment of $50 million for TTM Innovation Center in Eau Claire, Wisconsin facility, located close to our existing technology center in Chippewa Falls, Wisconsin
• Geographic expansion into Europe:
  • Initiated by our planned acquisitions of Swiss Technology Group & ILFA, which are expected to close in late Q3
• Vertical Integration in Integrated Electronics:
  • The planned acquisition of Epiq Solutions is projected to elevate TTM’s vertical integration capabilities for its integrated electronics products
  • We believe it significantly expands TTM's addressable opportunities in high-priority defense mission areas including Missile Defense, GEO-to-LEO Space, Communications and Signals Intelligence, Electronic Warfare, and Intelligence, Surveillance and Reconnaissance

Planned Epiq Acquisition Strategic Rationale:

Provides highly complementary offerings that enable full command of the RF spectrum through small-form-factor, software-driven solutions

Accelerates TTM's “up the chain” vertical integration strategy across land, air, sea, and space domains through multiple defense and commercial expansion opportunities

Brings cutting edge technologies optimized for size, weight, and power rooted in open architectures supporting defense and commercial markets

Enhances TTM’s financial profile:

• All-cash purchase price of $1.1 billion, subject to customary closing adjustments
• Committed financing from JPMorgan, Bank of America, and Barclays, subject to customary conditions
• Synergy-adjusted transaction multiple estimated to be 17.4x expected Adjusted 2027 EBITDA 1
• Expected to be immediately accretive to Adjusted EBITDA margin and accretive to Non-GAAP Diluted EPS during 2028 1
• At the close of the transaction, we estimate total net leverage of 2.3x and we expect to reduce this to within the range of 1.5x to 1.7x within 12-18 months
• The transaction strengthens our financial model by adding a projected high margin long-cycle business
• Plenty of projected dry powder remains to invest in other strategic opportunities for growth in our end markets

“In support of our strategic direction we plan to continue to invest in critical technologies for our customer base. The addition of Epiq Solutions to TTM is highly strategic and provides complementary technology to our overall portfolio and represents an important step in executing our long-term growth strategy,” said Edwin Roks, President and Chief Executive Officer of TTM.

Guggenheim Securities, LLC is serving as the exclusive financial advisor and Polsinelli PC is serving as exclusive legal adviser to TTM for the potential acquisition of Epiq.