$650M Cash Sale of Ophir Optics Sends MKS Toward Core Semi Focus
MKSI sits 70% above its 52-week low of $130.72.
Summary
MKS agreed to sell its Ophir Optics unit to TTM Technologies for $650M in cash, a price above 18x projected FY26 Adjusted EBITDA and subject to customary closing adjustments. That is a rich multiple for a specialty asset and gives MKS immediate liquidity to pay down debt or fund the core semiconductor and electronics businesses. Ophir Instruments and the Ophir brand are excluded and stay with MKS, so the revenue given up is limited to the optics piece. The catch is timing: closing is not expected until Q2 2027 and still needs regulatory approvals and governmental consents, so the cash and any deleveraging are more than a year out. A definitive agreement is in place, with J.P. Morgan Securities LLC as exclusive financial advisor to MKS and Herzog Fox & Neeman as lead legal advisor. This follows a strong Q2 in August, when revenue rose 28% to $1.248B and beat consensus, with $1.4B of convertible notes now convertible and a dilution overhang in the background. The next hard data point is how management says it will use the proceeds, likely on the Q3 call.
Updated with an SEC 8-K filing · What changed
Updates
· SEC 8-K — MKS's $650M all-cash sale of Ophir Optics to TTM is expected to close in Q2 2027, subject to regulatory approvals and governmental consents; Ophir Instruments and the Ophir brand are excluded.
- Purchase price of $650 million is subject to customary closing adjustments.
- Definitive agreement entered into; J.P. Morgan Securities LLC is exclusive financial advisor to MKS.
- Herzog Fox & Neeman is lead legal advisor to MKS in connection with the transaction.
At the time of this announcement, MKSI was trading at $222.07 on NASDAQ in the Technology sector, with a market capitalization of approximately $14.5B. The 52-week trading range was $130.72 to $447.62. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: Wiseek News.