TTM Technologies completes $1.1 billion purchase of EPIQ Design Solutions
The deal is funded by a new $300 million term loan A, an $800 million term loan B and TTM's previously disclosed 6.750% notes due 2034
Published
TTM Technologies has closed its acquisition of EPIQ Design Solutions, a maker of software-defined radios and RF products for defense customers, for approximately $1.1 billion in cash.
The company funded the purchase with a new $300 million incremental term loan A and an $800 million incremental term loan B under an amended credit agreement, along with proceeds from its previously disclosed offering of 6.750% senior notes due 2034.
TTM says the deal will be immediately accretive to adjusted EBITDA. It expects the acquisition to be moderately dilutive to non-GAAP diluted earnings per share in 2027, before turning accretive in 2028.
The closing removes the financing contingency attached to the notes, whose special mandatory redemption clause tied to a November 15, 2026 deadline no longer applies. The purchase adds roughly $1.1 billion in incremental term loan debt plus the $500 million in notes to TTM's balance sheet. Management's own timeline, EBITDA gains now, EPS dilution next year, then EPS accretion in 2028, gives investors a multi-year yardstick for judging whether the added leverage pays off. EPIQ's defense RF and software-defined radio business now becomes a direct contributor to TTM's results rather than a pending item on its capital structure.