Lockheed Martin announced on 15 August 2024 the signing of a definitive agreement to acquire Terran Orbital: a global supplier of satellite-based solutions primarily supporting the aerospace and defence industries.
Lockheed Martin noted that 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 programmes, 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,” Robert Lightfoot, president of Lockheed Martin Space, was quoted as saying. “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.”
The enterprise value of the transaction is approximately USD 450 million (EUR 409.7 million). Lockheed Martin will acquire Terran Orbital for USD 0.25 in cash for each outstanding share of common stock and retire its existing debt. The transaction also provides for Lockheed Martin and other current Terran Orbital creditors establishing a new USD 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 industry.
Terran Orbital has a track record of supporting more than 80 missions over the past decade for government and commercial customers with complex mission requirements, from low Earth orbit to the Moon and beyond. Lockheed Martin is currently Terran Orbital’s largest customer.
Terran Orbital joined the Lockheed Martin Ventures (LM Ventures) portfolio – a fund that makes investments in technology innovations to drive growth in existing, adjacent and new segments for the company – with an initial investment in 2017. LM Ventures has since made two additional investments in Terran Orbital in 2020 and 2022. This marks the first LM Ventures company that Lockheed Martin has sought to acquire since founding the fund in 2007.