MKS Sells Ophir Optics to TTM Technologies for $650 Million: Why the Two Sides Quote Different Multiples

MKS Inc. agreed on Monday, October 19, 2026 to sell its Ophir Optics business to TTM Technologies for about $650 million in cash. MKS shares traded at $220.19, up 2.49% on the day, and TTM shares at $98.61, up 5.04%. The deal was announced at 08:15 ET, before the market opened, and both companies and expect it to close in the second quarter of 2027.

The two sides describe the same price in very different ways. MKS says it is selling at more than 18 times Ophir Optics' projected 2026 adjusted EBITDA, a measure of operating profit before interest, taxes, depreciation and amortization. TTM says it is paying about 10.3 times the unit's expected 2027 adjusted EBITDA, before any cost savings.

What the two multiples imply

Neither company disclosed Ophir Optics' earnings. Dividing the price by each multiple gives the figures behind them: at more than 18 times, 2026 adjusted EBITDA is below about $36 million, and at 10.3 times, 2027 adjusted EBITDA comes to about $63 million. That is a rise of roughly 75% in one year. These are our calculations, not company figures. TTM is paying for earnings growth it expects next year, while the price is high against this year's earnings.

What is changing hands

Ophir Optics makes infrared thermal imaging and laser optics for defense, security and industrial customers, with plants in Israel and Romania. It sat in MKS's Specialty Industrial market. MKS keeps Ophir Instruments, which makes laser power meters and beam profilers, and keeps the Ophir brand. MKS chief executive John T.C. Lee said the sale lets the company capture the value it built in the unit and further strengthen its balance sheet. MKS did not say how much debt it will repay.

For TTM, a maker of printed circuit boards and defense electronics, the unit adds optical parts for land, air, sea and unmanned systems, according to chief executive Edwin Roks. TTM expects the deal to raise its adjusted EBITDA margin and non-GAAP earnings per share from the start. It will pay with cash on hand, future cash flow and borrowing under its credit line, the same pool that funds a $400 million capacity expansion in Asia. The deal needs regulatory approvals and government consents, which is why closing is expected only in the second quarter of 2027.

TTM's second acquisition in three weeks

TTM closed its purchase of Epiq Solutions for about $1.1 billion on September 30, 2026, paid for with new term loans and notes. This one is funded from cash and the company's credit line rather than new term loans. TTM reports third-quarter results on October 22, before the market opens, and MKS reports on November 4, after the close. Our earlier report covers TTM's measured move on October 12.

The MKS headline reached the MoveSurge news feed at 08:15:00 ET. In thin early trading MKS stock was at $223.59 just before it and $222.07 a minute later, down 0.68%, on a few hundred shares. Friday's close was about $214.83, so the stock was already higher before the announcement.