TTM agrees to buy Ophir Optics for 650 million dollars
TTM Technologies has signed a cash agreement to acquire MKS’s Ophir Optics business for 650 million dollars. The Israel- and Romania-based operation makes thermal-imaging and laser optics for defence, security and industry. TTM aims to add those capabilities to its electronics businesses, with completion targeted for the second quarter of 2027, subject to approvals.
Economics & Markets··Morning
The agreement covers optics operations in two countries
TTM Technologies, a maker of printed circuit boards and electronic components, has signed a definitive agreement to buy MKS’s Ophir Optics business for approximately 650 million dollars in cash. Announced on October 19, the transaction is subject to customary price adjustments. Ophir Optics has operations in Israel and Romania and makes precision optical products for thermal imaging and laser systems.[1], [2]
The assets being sold exclude MKS’s separately operated Ophir Instruments laser measurement and characterisation business. The Ophir brand is also outside the agreement. The distinction defines which operations TTM is acquiring: the proposed transfer concerns the optics business rather than every business or product carrying the Ophir name within MKS’s wider portfolio.[1], [2]
TTM aims to add optics to its electronics offering
Ophir Optics serves defence, security and industrial applications, including land, air, maritime and unmanned platforms. TTM intends to combine those optical capabilities with its existing printed circuit board, radio-frequency component and systems businesses. Chief executive Edwin Roks presented the acquisition as a way to broaden what the company can offer its defence and industrial customers.[1]
TTM plans to finance the purchase with cash on hand, future cash flow and borrowing under its existing revolving credit facility. Its estimated purchase multiple is approximately 10.3 times Ophir Optics’ expected fiscal 2027 adjusted earnings before interest, tax, depreciation and amortisation, excluding synergies. This is a valuation against forecast earnings for a future financial year.[1], [2]
Approvals are required before the planned completion
The companies target the second quarter of 2027 for completion. Regulatory approvals, government consents and permits are among the required closing conditions. TTM expects the acquisition to improve its adjusted earnings margin and adjusted diluted earnings per share. Those benefits are management forecasts that depend on the proposed transaction and future business performance.[1], [2]
Citigroup is advising TTM financially, while Polsinelli and Arnon, Tadmor-Levy are its legal advisers. On the seller’s side, J.P. Morgan Securities advised MKS and Herzog Fox & Neeman acted as legal adviser.[2]
