COSTA MESA, CA -- TTM Technologies will acquire Viasystems Group in a deal valued at about $927 million. Under terms of the deal, announced today, TTM will pay $368 million in cash and stock and also assume Viasystems' debt of about $559 million.

The merger will boost TTM to the number two spot in PCB fabrication sales worldwide. Their combined printed circuit board fabrication revenue was about $2.38 billion in 2013, according to the NT-100 list of the largest board fabricators. Nippon Mektron was No. 1 at $2.53 billion in 2013.

The combined company have approximately 30,000 employees and 28 manufacturing facilities worldwide.

The transaction is expected to be materially accretive to TTM's non-GAAP earnings per share in the first year, and will be financed with new secured credit line of $1.3 billion. 

"Both TTM and Viasystems have pursued successful strategies over the years, and we are excited to bring these two companies together," said Tom Edman, CEO of TTM. "This combination creates an industry leader with the ability to deliver expanded capabilities from a broad global footprint to service more customers and end-markets. In one step, we will accelerate our strategy to diversify our business and also reduce the impact of seasonality inherent in the cellular phone end market. We believe that the combination will result in significant synergies created by expanded capabilities and economies of scale that will benefit the customers, employees and shareholders of both companies."

"This is a compelling strategic combination that makes for an exciting new chapter for Viasystems," said David M. Sindelar, CEO of Viasystems."The combination of these two companies will create one of the best management teams in the industry.I believe this combination is an excellent opportunity to realize value for our shareholders and creates new opportunities for our customers and employees."

The acquisition of Viasystems is expected to accelerate TTM's entry into the automotive industry, an end-market that offers diversification, while expanding TTM's presence in the medical, industrial and instrumentation, and aerospace and defense segments. Viasystems is the fourth largest automotive PCB maker in the world, with 2013 sales of $353 million, according to Dr. Hayao Nakahara.

The deal also gives TTM a global footprint that serves as a foundation for future growth by utilizing the complementary strengths of the combined company in North America and China.

Under terms of the deal, Viasystems shareholders will receive per share consideration equal to $11.33 in cash and 0.706 shares of TTM common stock for each Viasystems share.

In the 12 months ended June 30, the combined company would have generated pro forma revenues of $2.5 billion and adjusted EBITDA of $300 million. 

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