TTM Technologies (TTMI) investor relations material

Deal rationale and strategic fit

• Acquisition aligns with a strategy to move up the value chain in integrated electronics, expand RF and DSP capabilities, and enhance vertical integration across communications, defense, and aerospace markets.

• Expands addressable opportunities in high-priority defense mission areas, including missile defense, space, communications, signals intelligence, electronic warfare, and ISR.

• Epiq's portfolio complements existing offerings with minimal overlap, enabling a broader product suite and new market opportunities.

• Supports long-term growth strategy by investing in critical technologies for fast-growing markets and enhances long-term business composition and financial model.

• Enables geographic expansion, especially in Europe, leveraging both companies' relationships with major industry players.

Financial terms and conditions

• All-cash purchase price of $1.1 billion, subject to customary closing adjustments, funded through committed financing from JPMorgan, Bank of America, and Barclays.

• Expected closing in Q4 2026, subject to regulatory approvals and customary conditions.

• Transaction expected to be immediately accretive to Adjusted EBITDA margin and accretive to Non-GAAP diluted EPS by 2028.

• Estimated 17.4x multiple on expected 2027 Adjusted EBITDA, with $9 million run-rate EBITDA synergies assumed.

• Initial net leverage of 2.3x, targeted to fall to 1.5x–1.7x within 12–18 months post-close.

Synergies and expected cost savings

• $9 million in run-rate EBITDA synergies anticipated from cost efficiencies and revenue synergies.

• Limited customer and program overlap enables expansion to new customers and platforms.

• Projected strong EBITDA generation and cash flow conversion expected to enable rapid de-leveraging over 12–18 months.

• Sales force alignment and combined offerings expected to drive incremental revenue over time.

• Transaction expected to strengthen financial model by adding high-margin, long-cycle business.