Defence electronics firm Telephonics to get new owner

Telephonics has provided identification friend-or-foe equipment for the Boeing P-8 Poseidon maritime surveillance aircraft. (Boeing)

US electronics company TTM Technologies plans to expand its defence portfolio by acquiring Telephonics Corporation for about USD330 million in cash, the buyer announced on 18 April.

TTM said the purchase will help it benefit from an expected spending increase for defence electronics, including microelectronics, which the US Department of Defense has called a priority sector. By adding Telephonics, TTM looks forward to “building a really robust growth story going forward in the defence base”, TTM CEO Tom Edman told analysts.

Telephonics, which employs about 625 people, provides electronics for communication, radar, and surveillance systems. Its significant programmes include the Boeing P-8 Poseidon maritime surveillance aircraft and the Sikorsky UH-60 Black Hawk utility helicopter.

Telephonics, which is based in Farmingdale, New York, will become part of TTM's Aerospace & Defense/Specialty (A&D) Business Unit and will account for about 10% of the combined company's revenue. TTM and Telephonics generated revenue of USD2.3 billion and USD271 million, respectively, in fiscal year 2021.

TTM, which is based in Santa Ana, California, employs about 17,000 people and serves a wide range of markets, including automotive, industrial, and medical. Its existing defence programmes include the Lockheed Martin F-35 Joint Strike Fighter and Raytheon Technologies' Lower Tier Air and Missile Defense Sensor (LTAMDS). TTM bought defence electronics provider Anaren for USD775 million in 2018.

TTM expects to close the Telephonics acquisition by the end of the second quarter of 2022. The two companies have minimal product overlap, which TTM officials believe will help the deal receive approval from anti-trust regulators.