Lockheed to acquire satellite products maker Terran in $450 mn deal
The agreement also provides for Lockheed Martin and other Terran creditors establishing a new, $30 million working capital facility.
Lockheed Martin, the global defense and aerospace giant, is acquiring satellite products manufacturer Terran Orbital in a $450 million deal.
Lockheed will pay 25 cents per share in cash. In March, the company had offered $1 per Terran share.
The agreement also provides for Lockheed Martin and other Terran creditors establishing a new, $30 million working capital facility.
Lockheed uses Terran Orbital’s satellite bus for the U.S. Space Development Agency’s transport and tracking layer programs.
The deal is expected to close in the fourth quarter of 2024 subject to regulatory and other approvals.
“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."
“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.”
Terran Orbital, which makes satellite products primarily serving the aerospace and defense industries, joined the Lockheed Martin Ventures (LM Ventures) portfolio with an initial investment in 2017.
