Lockheed Martin will buy satellite manufacturer Terran Orbital for $450 million as a way to expand its space business, the company announced today.
Lockheed has worked with Terran Orbital on several programs, including the Transport and Tracking Layers for the Space Development Agency, and it is also Terran’s largest customer to date.
"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."
Terran Orbital has been struggling with dwindling cash reserves and mounting debt, despite the company debuting on the public market with a $1.8 billion valuation just two years ago.
Now, pending regulatory and Terran stockholder approvals, Lockheed will buy the company for 25 cents in cash for each outstanding common stock share and retire its existing debt.
Terran will remain a commercial merchant supplier upon closing, which Lockheed stated it expects in the fourth quarter this year.
"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 deal comes just months after Lockheed previously bid $600 million to buy Terran in April, according to CNBC.