Lockheed Martin has announced the signing of a definitive agreement to acquire Terran Orbital, a global leader in satellite-based solutions that primarily support the aerospace and defence industries.
Terran Orbital brings extensive robotic manufacturing capabilities and high-performing modular space vehicle designs to the table. Combined with Lockheed Martin's proven track record in performance and innovation, this acquisition is set to deliver an expanded range of capabilities and value to customers. Lockheed Martin already utilises Terran Orbital's satellites in its work, notably with the Space Development Agency's Transport and Tracking Layer programmes, as well as in several self-funded technology demonstrations.
“We've collaborated with Terran Orbital for more than seven years on various successful missions,” said Robert Lightfoot, president of Lockheed Martin Space. “Their capabilities, talent, and business momentum align perfectly with Lockheed Martin Space's strategic plans. We are excited to welcome them to our team. Our customers demand advanced technology and faster product development, and together, that's what we will deliver.”
This acquisition marks a significant step forward, as Lockheed Martin continues to invest in technology, talent and capacity to meet future customer needs.
“This transaction combines our strengths and expertise,” said Marc Bell, Chairman, CEO, and co-founder of Terran Orbital. “It will create new opportunities for growth and innovation, and we couldn't be more excited about the future. Access to Lockheed Martin's exceptional engineers and world-class facilities will accelerate our business plan to provide low-cost, high-value solutions to our ever-expanding customer base.”
The enterprise value of the transaction is approximately US$450 million. Lockheed Martin will acquire Terran Orbital for US$0.25 in cash per share of common stock and retire its existing debt. Additionally, Lockheed Martin and other current Terran Orbital creditors have established a new US$30 million working capital facility as of the signing.
The transaction is expected to close in the fourth quarter of 2024, subject to customary closing conditions, including regulatory and stockholder approvals. Upon closing, Terran Orbital will continue to operate as a commercial merchant supplier to the industry.
