On August 18, TTM Technologies Inc fell 5.66% in pre-market trading, trading at $132.77/share, with turnover of $1.3074 million. The decline comes as the company announced a major acquisition deal that raised market concerns over financial leverage.

TTM Technologies announced it will acquire Epiq Design Solutions for approximately $1.1 billion in cash to expand its radio frequency, software-defined radio, and space computing product portfolio. The acquisition is intended to strengthen vertical integration and broaden opportunities across defense markets, including missile defense, space, communications, signals intelligence, and electronic warfare. Management expects the deal to be immediately accretive to adjusted EBITDA margin and accretive to non-GAAP diluted earnings per share by 2028.

Despite the optimistic long-term outlook from management, the $1.1 billion all-cash commitment has triggered investor concerns regarding balance sheet strain and integration execution risks. The stock had previously surged over 12% on August 6 following a Q2 earnings beat, with adjusted EPS of $0.99 exceeding the consensus estimate of $0.90 and revenue of $1.004 billion surpassing expectations, making the current pullback a partial reversal of recent gains.

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