MKS sells Ophir Optics division to PCB maker TTM for $650M

TTM Technologies, the Nasdaq-listed manufacturer of printed circuit boards (PCBs) and radiofrequency components, has agreed a deal to buy the Ophir Optics division from current owner MKS Instruments for $650 million.

Pending approvals, the all-cash acquisition is expected to close by the middle of next year. It covers Ophir’s infrared optics for thermal imaging applications, and its optical components and beam-shapers used in industrial lasers.

But the agreement does not include the Ophir Instruments division, which specializes in laser beam analysis and advanced power meters, or the Ophir brand - both of which will remain under the MKS umbrella.

TTM’s CEO Edwin Roks, who previously headed up imaging giant Teledyne Technologies and before that Teledyne’s DALSA division, said in a statement announcing the deal:

“This acquisition adds another important modality to our product offering with advanced optics to provide systems solutions to our defense and industrial customers, which 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.”

TTM’s latest financial results, posted October 22, show that the company’s sales are increasingly dominated by a combination of aerospace, defense, and data center and networking applications.

Roks says that the Ophir deal will expand the firm’s portfolio with “mission-critical” optical solutions for land, air, maritime, and unmanned platforms, as well as TTM’s industrial portfolio, which includes metrology and robotics applications.

Compact multi-modal sensing systems

Originating in Jerusalem, Israel, 50 years ago, the Ophir Optronics business was acquired by Newport Corporation for $230 million back in 2011, before Newport was then snapped up by MKS five years later. The Ophir Optics element remains headquartered in Israel, with operations in Romania.

Current MKS CEO John Lee commented on the decision to sell part of that business to TTM: “This transaction represents an opportunity for MKS to capitalize on the value we’ve created with the Ophir Optics business and further strengthen our balance sheet. We believe TTM is well positioned to support this business in its next phase of growth.”

During an investor conference call discussing TTM’s latest quarterly results, Roks said that TTM would look to combine Ophir’s market-leading infrared optics with the firm’s existing RF capability, to provide extremely compact multi-modal radar and imaging subsystems for drone and counter-drone applications.

“Optics and processing are the key differentiators in any optical sensing system,” he added, pointing to likely deployments in surveillance and electronic warfare as TTM aims to move up the value chain in the defense sector by combining software-defined radios with infrared imaging.

On the industrial side, Ophir’s products will add high-end beam-shaping capability to TTM’s existing portfolio for laser welding, cutting, and PCB drilling applications, with Roks highlighting the MKS division’s recent strong revenue growth and expanding profit margins that are expected to benefit TTM’s bottom line as soon as the deal is completed. 

TTM posted a pre-tax profit of $142 million on sales of $1.2 billion in the latest quarter, with Roks and his executive team already forecasting that full-year sales in 2027 will rise to between $6.5 billion and $6.75 billion - a projection that does not yet include any additional contributions from the Ophir Optics business.