Lockheed Martin to acquire Terran Orbital in $450m deal

Lockheed Martin (NYSE:LMT ) announced Thursday it has agreed a deal to acquire Terran Orbital Corporation (LLAP), a leading provider of satellite-based solutions, for approximately $450 million.

The acquisition is set to take Terran Orbital private, with Lockheed Martin offering $0.25 in cash per share of Terran Orbital's common stock and retiring the company's existing debt.

Terran Orbital is known for its high-throughput, robotic manufacturing capabilities and advanced modular space vehicle designs. These assets have been integral to Lockheed Martin's operations, particularly in projects with the Space Development Agency's Transport and Tracking Layer programs.

"We've worked with Terran Orbital for more than seven years on a variety of successful missions," said Robert Lightfoot, president of Lockheed Martin Space. "Their capabilities, talent, and business momentum align with Lockheed Martin Space's strategic plans."

The deal is expected to close in the fourth quarter of 2024, pending regulatory approvals and shareholder consent.

Upon completion, Terran Orbital will continue to operate as a commercial supplier within the industry, while benefiting from Lockheed Martin's resources and engineering expertise.

Terran Orbital's CEO, Marc Bell, expressed enthusiasm for the acquisition, highlighting the potential for accelerated growth and innovation. "This move will open new opportunities for growth and innovation," Bell said.

"Access to Lockheed Martin's incredible engineers and world-class facilities will only accelerate our business plan."

This transaction underscores Lockheed Martin's aim to expand its capabilities in the aerospace and defense sectors while enhancing its satellite manufacturing capacity.

Source: Investing.com