Ibadan, August 16, 2024. – Lockheed Martin today announced the signing of a definitive agreement to acquire Terran Orbital, a satellite-based solutions provider primarily supporting the aerospace and defense industries. Terran Orbital brings extensive production capacity, robotic manufacturing capability, and high-performance modular spacecraft designs. Combined with Lockheed’s track record of performance and innovation, this transaction will result in a broader range of capabilities and value for customers.
Lockheed Martin relies on Terran Orbital satellites for its work, including in the Space Development Agency’s Transportation and Tracking Layer programs and in several of its self-funded technology demonstrations. In addition, the transaction will pave the way for further advancement as the company continues to invest in technology, people and capability to meet future customer needs.
The enterprise value of the transaction is approximately $450 million. As a result, Lockheed Martin will acquire Terran Orbital for $0.25 in cash per outstanding common share and will retire its existing debt. This transaction also provides for Lockheed Martin and other existing creditors of Terran Orbital to establish a new $30 million working capital facility that has been initiated at the time of signing. The transaction is tentatively expected to close in the fourth quarter of 2024 and is subject to the satisfaction of customary closing conditions, including regulatory and Terran Orbital shareholder approvals.
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. Today, Lockheed Martin is Terran Orbital’s largest customer. As a result, this long-standing working relationship between the companies underpins strong cultural alignment and the ability to recognize synergies between the two businesses.
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