Lockheed Martin to buy Terran Orbital

Lockheed Martin has signed a definitive agreement to acquire Terran Orbital, the satellite manufacturer based in Boca Raton, Florida.

The deal awaits regulatory and Terran Orbital stockholder approval.

The acquisition enables Lockheed Martin to expanding its “advanced satellite manufacturing and responsive space capabilities”, said the company.

The transaction is expected to close in Q4 of this year. And the deal is valued at approximately $450 million, with Lockheed Martin acquiring Terran Orbital for $0.25 in cash for each outstanding share of common stock and retire its existing debt.

The deal also establishes a $30 million working capital facility that has been put in place for Lockheed Martin and other current Terran Orbital creditors.

“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.”

Lockheed Martin already uses Terran Orbital’s satellites for its work, most notably with the Space Development Agency’s Transport and Tracking Layer programs. We reported last year, for example, on its manufacturing 42 satellite buses for the Tranche 1 Transport Layer Program.

“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 – 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.”

Reportedly Lockheed Martin had planned to buy Terran earlier this year.

Terran recently began construction of a new space vehicle assembly, integration, and testing facility in Irvine, California, we reported earlier this month.

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