TTM Technologies buys Epiq Solutions for $1.1 billion to expand defense RF

TTM Technologies agreed to acquire Epiq Solutions for $1.1 billion in an all-cash transaction, expanding its radio-frequency and digital signal processing capabilities for aerospace, defense, and communications applications. The deal, announced Monday, is expected to close by the end of 2026, subject to regulatory approvals including HSR clearance.

"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.

The transaction values Epiq at 17.4x expected 2027 Adjusted EBITDA, including $9 million in projected annual cost savings. TTM secured $1.1 billion in committed financing — a $300 million Term Loan A and an $800 million seven-year Term Loan B — from JPMorgan, Bank of America, and Barclays. The company estimates net leverage of 2.3x at close, with a target of 1.5x to 1.7x within 12 to 18 months.

The acquisition is expected to be immediately accretive to Adjusted EBITDA margin and Non-GAAP Diluted EPS during 2028, while expanding TTM's addressable opportunities in missile defense, GEO-to-LEO space, communications, signals intelligence, electronic warfare, and intelligence, surveillance and reconnaissance. The deal also advances TTM's vertical integration strategy, pairing Epiq's software-defined radio technology with TTM's manufacturing scale across land, air, sea, and space platforms.

Epiq's expansion under Veritas Capital

Epiq Solutions, founded in 2009 and headquartered in Rolling Meadows, Illinois, was acquired by Veritas Capital in 2022 through its Vantage strategy. Under Veritas' ownership, Epiq expanded beyond its core small-form-factor software-defined radio business through the acquisitions of Xiphos Systems, adding space-based computing, and Cyber Radio Solutions, strengthening its high-performance RF portfolio.

The company now serves commercial, government, and defense customers with open-architecture, ITAR-free software-defined radios, embedded computing systems, and radiation-tolerant space compute solutions. Its products support signals intelligence, electronic warfare, unmanned systems, and space applications across air, land, sea, and space domains. Epiq has fielded thousands of devices built around rapidly deployable RF systems.

Epiq CEO John Orlando said the company evolved its platform under Veritas to address mission-critical demands across ground, air, maritime, and space environments. The sale concludes a four-year investment period in which Veritas deployed capital into product development and used acquisitions to expand Epiq's addressable markets. Veritas, which manages more than $54 billion in assets, focuses on businesses at the intersection of technology and government.

TTM's broader growth strategy

The Epiq acquisition is part of a broader expansion at TTM. The company has committed $1.2 billion in expected investment from 2025 to 2029 for data center and networking capacity, over $130 million invested in its Syracuse Diamond facility for Ultra-HDI solutions, and more than $400 million planned through 2029 for growth across U.S. manufacturing facilities as munitions demand surges. TTM also plans a $50 million Innovation Center in Eau Claire, Wisconsin, and is pursuing European expansion through the planned acquisitions of Swiss Technology Group and ILFA, expected to close in late Q3.

TTM reported Q2 2026 revenue of $1 billion, up 37.42 percent from the same period last year. Wall Street analysts have set a median price target of $211.50 on the stock, with Needham's James Ricchiuti at $220, Truist's William Stein at $215, B. Riley's Mike Crawford at $208, and Stifel's Ruben Roy at $205. Truist issued a "Buy" rating on the stock in April.

The defense electronics sector has seen a wave of consolidation as prime contractors and component suppliers prepare for rising U.S. and allied defense budgets. Epiq's open-architecture approach is relevant as defense customers seek greater interoperability among communications, sensing, and computing systems. Software-defined radio technology allows functions traditionally handled through dedicated hardware to be implemented and modified through software, creating flexibility as mission requirements evolve.

Guggenheim Securities served as exclusive financial advisor to TTM, with Polsinelli PC as legal advisor. Goldman Sachs led financial advisory for Epiq, with Robert W. Baird as co-advisor and Latham & Watkins as legal counsel.

If required regulatory approvals are not obtained, TTM must pay a $77 million termination fee. The company said it retains "plenty of projected dry powder" for additional strategic investments after the deal closes, suggesting further M&A activity in the defense technology sector.

This article is for informational purposes only and does not constitute investment advice.