Lockheed Martin announced the signing of a definitive agreement to acquire Terran Orbital, a leader of satellite-based solutions primarily supporting the aerospace and defense industries.
Terran Orbital brings a high throughput, robotic manufacturing capacity and high-performing modular space vehicle designs. Combined with Lockheed Martin’s record of performance and innovation, this transaction will usher in an even broader range of capabilities and value for customers.
Lockheed Martin uses Terran Orbital’s satellites for its work, most notably with the Space Development Agency’s Transport and Tracking Layer programs, and in several of its self-funded technology demonstrations.
“We’ve worked with Terran Orbital for more than seven years on a variety of successful missions,” said Robert Lightfoot, president, Lockheed Martin Space.
“Their capabilities, talent and business momentum align with Lockheed Martin Space’s strategic plans – and we’re looking forward to welcoming them to our team. Our customers require advanced technology and even faster product development, and that’s what we can achieve together.”
The transaction stands to pave a path for further advancement, as Lockheed Martin continues to invest in technology, people, and capacity to support future customer needs.
“This transaction combines our strengths and expertise,” said Marc Bell, chairman, CEO, and co-founder of Terran Orbital.
“This move will open new opportunities for growth and innovation, and we couldn’t be more excited about the future. Access to Lockheed Martin’s incredible engineers and world class facilities will only accelerate our business plan to provide low-cost, high-value solutions to our ever-growing customer base.”
The enterprise value of the transaction is approximately $450 million. Lockheed Martin will acquire Terran Orbital for $0.25 in cash for each outstanding share of common stock and retire its existing debt.
This transaction also provides for Lockheed Martin and other current Terran Orbital creditors to establish a new, $30 million working capital facility that has been put in place as of signing.
The transaction is expected to close in the fourth quarter of 2024 and is subject to the satisfaction of customary closing conditions, including regulatory and Terran Orbital stockholder approvals. Upon closing, Terran Orbital will remain a commercial merchant supplier to the industry.
