Lockheed Martin Set to Acquire Terran Orbital for $450 Million

Lockheed Martin Set to Acquire Terran Orbital for $450 Million
by Clarence Oxford
Los Angeles CA (SPX) Aug 16, 2024

Lockheed Martin [NYSE: LMT] has announced a definitive agreement to acquire Terran Orbital [NYSE: LLAP], a leading provider of satellite-based solutions primarily serving the aerospace and defense sectors. The transaction, valued at approximately $450 million, is expected to be finalized in the fourth quarter of 2024, pending regulatory and stockholder approvals.

Terran Orbital, known for its high-throughput robotic manufacturing and modular space vehicle designs, will significantly bolster Lockheed Martin's existing capabilities. Lockheed Martin has utilized Terran Orbital's satellites in key projects, including the Space Development Agency's Transport and Tracking Layer programs and several self-funded technology demonstrations.

Robert Lightfoot, president of Lockheed Martin Space, commented on the acquisition: "We've worked with Terran Orbital for more than seven years on a variety of successful missions. 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."

Marc Bell, chairman, CEO, and co-founder of Terran Orbital, expressed enthusiasm for the deal, stating, "This transaction combines our strengths and expertise. 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."

Transaction Specifics
Under the agreement, Lockheed Martin will acquire Terran Orbital at $0.25 per share in cash and will also retire the company's existing debt. Additionally, a new $30 million working capital facility has been established by Lockheed Martin and other Terran Orbital creditors as part of the deal.

Terran Orbital, which has supported more than 80 missions over the past decade for both government and commercial customers, will continue operating as a commercial merchant supplier post-acquisition. The acquisition is the first of its kind for Lockheed Martin Ventures, which initially invested in Terran Orbital in 2017 and made subsequent investments in 2020 and 2022.