TTM Technologies To Buy Viasystems For About $927 Mln - Update

(RTTNews) - Viasystems Group, Inc. (VIAS) Monday announced that it has agreed to be acquired by printed circuit board maker TTM Technologies, Inc. (TTMI) for an enterprise value of $927 million. Shares of Viasystems climbed about 46 percent in pre-market trading, and TTM stock rose about 16 percent.

Viasystems is a provider of multi-layer printed circuit boards or PCBs, and electro-mechanical solutions. The transaction, which is expected to close in the first half of 2015, is anticipated to be materially accretive to non-GAAP earnings per share in the first year.

As per the definitive agreement, TTM will acquire all outstanding shares of Viasystems for a combined consideration of $11.33 in cash and 0.706 shares of TTM common stock, based on the closing market price on September 19, at $16.46 per Viasystems share, or about $368 million.

TTM has identified at least $25 million in pre-tax cost synergies which are expected to be realized within the first year.

Viasystems noted that the combined company will be one of the world's leading PCB manufacturers, with a strong position in the automotive, aerospace and defense, medical, industrial and instrumentation, cellular phone and networking/telecom end markets.

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

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

Tom Edman, CEO of TTM stated, "Both TTM and Viasystems have pursued successful strategies over the years, and we are excited to bring these two companies together. We believe that the combination will result in significant synergies..."

The acquisition will provide a number of benefits to TTM, that include increasing TTM's customer and end market diversity, positioning the combined company for further long-term growth, the firm said.

TTM expects to utilize a new $1.3 billion senior secured credit facility to finance the cash portion of the purchase price, refinance certain debt at each company, and provide liquidity for working capital and general corporate purposes.

J.P. Morgan acted as financial advisor for TTM, while Stifel acted as financial advisor for Viasystems.

Viasystems shares closed Friday's trading at $11.70 on the Nasdaq. In the pre-market activity on Monday, the shares climbed 45.73 percent.

TTMI ended on Friday at $7.28. In the pre-market, the shares are up 16.48 percent.