TTM Technologies to buy MKS Inc.'s Ophir Optics business for $650 million

TTM Technologies, Inc. (TTMI) said Monday it had entered into a definitive agreement to buy the Ophir Optics business from MKS Inc. (NASDAQ: MKSI) for approximately $650 million in an all-cash transaction. The price is subject to customary closing adjustments, according to an 8-K filing with the Securities and Exchange Commission.

The filing attaches a press release describing the target. Ophir Optics is an Israel and Romania-based manufacturer of high-precision infrared thermal imaging and laser optics solutions.

The business serves defense, security and industrial applications, the release said.

The release's headline says the deal adds advanced infrared optics capabilities to the company's offering.

President and Chief Executive Officer Edwin Roks said the planned acquisition "adds another important modality to our product offering with advanced optics to provide systems solutions to our defense and industrial customers."

Roks said the deal "will help us to benefit from key megatrend tailwinds generated by the growing need for surveillance and the increasing use of laser applications by the industrial base."

The company said the purchase, along with a previously announced $400 million capital and capacity expansion in Asia, will be funded through a combination of cash on hand, expected future cash flow and borrowings under its existing revolving credit facility.

The purchase price is roughly 10.3 times expected FY 2027 Adjusted EBITDA of Ophir Optics, without synergies, the company said. The release describes that multiple as an estimate.

The company expects the deal to be immediately accretive to both its Adjusted EBITDA Margin and Non-GAAP Diluted EPS.

The release says the company cannot reconcile expected 2027 Adjusted EBITDA of Ophir Optics to a GAAP measure without unreasonable effort.

The deal does not include the Ophir Instruments laser characterization business of MKS, which operates separately from Ophir Optics. The sale of the Ophir brand is also excluded.

The company expects the transaction to close in the second quarter of 2027. Closing is subject to customary closing conditions, including certain regulatory approvals and governmental consents and permits.

The release does not name the specific regulatory approvals required.

Citi is serving as exclusive financial advisor to TTM. Polsinelli PC and Arnon, Tadmor-Levy are serving as co-legal advisers.

TTM describes itself as a global manufacturer of technology products, including mission systems, RF components, RF microwave and microelectronic assemblies, and interconnect products such as PCBs and substrates.

MKS describes itself as a supplier of foundational technology solutions to semiconductor manufacturing, electronics and packaging, and specialty industrial applications.