TTM Technologies Inc. (NASDAQ:TTMI) is making a big bet on defense and space. On Monday, the company announced it has agreed to acquire Epiq Design Solutions LLC for about $1.1 billion in cash. That's a hefty price tag, but TTM sees it as a way to deepen its roots in markets that are only getting more important.

Epiq isn't a household name, but it plays in a niche that's critical for modern military and space operations. The company builds open-architecture, AI-enabled software-defined radios (SDRs), high-performance radio frequency products, and radiation-tolerant space computing solutions. Think of it as the tech that keeps communications and computing working in the harshest environments, from the battlefield to orbit.

Deal Expands Defense Portfolio

TTM says the acquisition will strengthen its integrated electronics business and push forward its vertical integration strategy across land, air, sea, and space. That's a lot of territory, literally and figuratively. The deal also widens TTM's exposure to defense applications like missile defense, space, communications, signals intelligence, electronic warfare, and intelligence, surveillance, and reconnaissance.

Epiq's technology is designed for applications that need compact systems with lower size, weight, and power requirements. In the defense world, that's a big deal. Smaller, lighter, and more efficient gear means more capability packed into tight spaces, whether that's a drone, a satellite, or a soldier's kit.

Expects Earnings Boost In 2028

Financially, TTM expects the transaction to immediately add to its adjusted EBITDA margin. It also sees the deal becoming accretive to non-GAAP diluted earnings per share during 2028. That's a bit of a wait, but the company is thinking long-term.

Here's the math: TTM estimates a synergy-adjusted transaction multiple of 17.4 times Epiq's expected 2027 adjusted EBITDA. That's a premium, but TTM believes the strategic fit justifies it. The company expects net leverage of about 2.3 times when the deal closes, and it plans to bring that down to between 1.5 times and 1.7 times within 12 to 18 months.

To fund the acquisition, TTM has commitments from JPMorgan, Bank of America, and Barclays, subject to customary conditions. So the financing is lined up, pending the usual regulatory and closing hurdles.

“The addition of Epiq Solutions to TTM is highly strategic and provides complementary technology to our overall portfolio,” TTM CEO Edwin Roks said in a statement. That's the kind of language you'd expect, but the move does seem to fit a pattern of defense consolidation as governments ramp up spending on next-gen capabilities.

As of the second quarter ending June 29, 2026, TTM reported $507.9 million in cash and cash equivalents. That's a solid war chest, though the $1.1 billion price tag means TTM will be leaning on debt to get this done.

Investors seemed to like the news. TTM Technologies shares were trading up 1.43% at $138.00 at the time of publication on Monday, according to market data.

This is a bold move for TTM, and it's not without risk. But if defense and space continue to be growth areas, this could be a smart way to position the company for the next decade.