In a recent release, TTM Technologies (News - Alert), a global printed circuit board (PCB) manufacturer, announced that it has completed its acquisition of Anaren. The combined company reportedly had pro-forma 2017 revenue of $2.9 billion.
The acquisition combines TTM’s PCB manufacturing with Anaren’s radio frequency (RF) design capability and product portfolio of RF components and subsystems for the Aerospace & Defense and Networking/Communication markets. The combined company will be positioned to benefit from the expected increase in spending for advanced radar technology in the Aerospace & Defense market and 5G technology in the wireless infrastructure market.
TTM reportedly has identified $15 million in pre-tax, run rate, cost synergies which are expected to be realized within the first two years after closing and expects this transaction to be immediately accretive to non-GAAP earnings.
“I enthusiastically welcome the employees of Anaren to TTM and look forward to the combination of our respective talents,” said Tom Edman, CEO, TTM. “I expect that integrating our manufacturing strength with Anaren’s RF engineering talent will enable us to deliver superior value-added solutions to our customers in the Aerospace & Defense market as well as in the other markets we serve. I also believe that the combination will result in meaningful revenue synergy opportunities created by complementary capabilities that will benefit the customers and employees of both companies.”
Anaren was purchased for $775 million in cash consideration, subject to certain customary adjustments at closing. TTM previously announced the allocation of commitments for the syndication of $600 million of incremental term loans. The closing of the incremental term loans occurred concurrently with the acquisition of Anaren.