TTM to buy MKS's Ophir Optics for $650M, adding infrared optics to defense push
What's the deal? TTM TechnologiesDealroom has a profile for this one. Try Dealroom → has agreed to buy MKS Inc.'s Ophir Optics business for roughly $650 million in an all-cash transaction. Ophir Optics, based in Israel and Romania, makes high-precision infrared thermal imaging and laser optics for defense, security, and industrial customers. The deal is expected to close in the second quarter of 2027, subject to regulatory approvals.
What's the endgame? TTM already builds circuit boards, RF assemblies, and mission systems for defense programs; Ophir adds an optical layer across land, air, maritime, and unmanned platforms. Chief executive Edwin Roks said the deal adds "another important modality" to TTM's offering, pushing the company from components toward integrated systems for defense and industrial customers.
Why now? TTM pointed to rising demand for surveillance and growing industrial use of lasers as the main reasons. For MKS, the unit sat in its Specialty Industrial segment rather than its core semiconductor and electronics business.
On the other side: MKS chief executive John T.C. Lee said the sale would "further strengthen our balance sheet." The deal excludes the separate Ophir Instruments laser-characterisation business and the Ophir brand, both of which stay with MKS.
The expansion angle: The purchase lands alongside TTM's previously announced $400 million capital and capacity expansion in Asia, aimed at AI infrastructure. TTM plans to fund both commitments through cash on hand, expected future cash flow, and borrowings under its revolving credit facility.
What could go wrong? The two commitments together stack sizeable demands on TTM's cash flow and revolver. The companies also disclose different multiples: MKS values Ophir at more than 18 times projected fiscal 2026 adjusted EBITDA, while TTM estimates about 10.3 times expected fiscal 2027 adjusted EBITDA, before synergies.
The signal: A single supplier offering circuit boards, RF assemblies, and infrared optics could simplify qualification for defense primes building electro-optical payloads, especially on smaller, higher-volume unmanned systems. TTM expects the deal to be immediately accretive to its adjusted EBITDA margin and non-GAAP diluted earnings per share.
Read more: tokenpost.com
Image credit: Generated with Gemini
