TTM Technologies, Inc. has entered into a definitive agreement to acquire Ophir Optics business from MKS Inc. for $650 million.
TTM Technologies (TTMI) agreed to acquire Ophir Optics from MKS Inc. (MKSI) for $650M, payable in cash. The deal, expected to close in Q2 2027, is valued at 18x the target's 2026 EBITDA. TTM plans to fund the acquisition through cash, future cash flow, and borrowings. The transaction is expected to be immediately accretive to TTM's EBITDA margin and non-GAAP EPS.
How this was made
The 30-second read
Why it matters
The deal adds a high‑margin optics business, improving TTMI's adjusted EBITDA margin and EPS, while MKSI shrinks.
Market read
A $650M M&A deal in the defense electronics sector, likely to move both TTMI and MKSI stocks.
What to watch
Regulatory approvals and potential antitrust scrutiny could delay closing and affect pricing.
Background
TTM Technologies, a PCB and RF component maker, is expanding its optics capability through the acquisition.
Ticker impact
TTM Technologies announced a definitive agreement to acquire the Ophir Optics business for $650M, a material M&A deal.
likely upward pressure as the market prices in accretion and growth potential
Deal size over $500M, high multiple, immediate accretion, and clear financing plan suggest a strong positive catalyst.
MKS Inc. disclosed the sale of its Ophir Optics business, removing a revenue-generating unit.
likely downward pressure as investors adjust for loss of the optics segment
The sale strips a business line; no replacement revenue disclosed, creating a negative earnings impact.
Market effects
Consolidation in the aerospace & defense optics market may prompt further M&A activity.
U.S. defense component suppliers could see valuation shifts as the deal reshapes supply chains.
The transaction highlights ongoing investment in high‑tech defense components worldwide.
Counterpoint
If integration costs exceed expectations, the accretion could be delayed, tempering upside.
Key entities
- CompanyTTM Technologies, Inc.
Acquirer, NasdaqGS:TTMI
- CompanyMKS Inc.
Seller, NasdaqGS:MKSI
