Lockheed Martin, a leading defense technology company based in Bethesda, MD, has announced a definitive agreement to acquire Terran Orbital, a global provider of satellite-based solutions primarily serving the aerospace and defense industries, for approximately $450 million.
Strategic Growth and Expansion Plans:
1. Integration of Satellite Manufacturing Capabilities:
This acquisition allows Lockheed Martin to integrate Terran Orbital’s advanced satellite manufacturing capabilities into its broader aerospace portfolio. Terran Orbital’s high-throughput, robotic manufacturing capacity and modular space vehicle designs will enhance Lockheed Martin’s ability to deliver comprehensive satellite solutions, addressing the evolving needs of military, civil, and commercial customers.
2. Expansion of Space Capabilities:
By acquiring Terran Orbital, Lockheed Martin aims to expand its capabilities in the space sector, particularly in satellite production and deployment. The acquisition will provide Lockheed Martin with greater control over the supply chain for its space programs, including the Space Development Agency’s Transport and Tracking Layer programs and various self-funded technology demonstrations.
3. Strengthening Position in the Aerospace and Defense Market:
This strategic move will strengthen Lockheed Martin’s position in the aerospace and defense market by combining its innovation and performance record with Terran Orbital’s expertise in satellite solutions. The integration of Terran Orbital’s technologies is expected to create new opportunities for Lockheed Martin to offer a wider range of services to its clients, enhancing the value proposition for both companies’ customers.
4. Financial Structure and Closing Conditions:
Under the terms of the agreement, Lockheed Martin will acquire Terran Orbital for $0.25 in cash per share of common stock and retire its existing debt. Additionally, a new $30 million working capital facility has been established by Lockheed Martin and other creditors to support Terran Orbital’s operations leading up to the transaction’s close. The deal is expected to close in the fourth quarter of 2024, subject to customary closing conditions, including regulatory approvals and approval by Terran Orbital’s stockholders.
5. Future Operations of Terran Orbital:
Post-acquisition, Terran Orbital will continue to operate as a commercial merchant supplier within the industry, maintaining its focus on providing end-to-end satellite solutions. This continuity will ensure that existing customers can continue to rely on Terran Orbital’s services while benefiting from the enhanced capabilities resulting from its integration with Lockheed Martin.
Led by Marc Bell, chairman, CEO, and co-founder, Terran Orbital’s expertise in satellite design, production, launch planning, mission operations, and on-orbit support will significantly contribute to Lockheed Martin’s strategic goals in the space and defense sectors. The acquisition is poised to create new synergies and deliver enhanced solutions to meet the growing demands of the global aerospace and defense industries.
