Lockheed Martin disclosed in a securities filing on Friday that it has submitted a bid to acquire spacecraft manufacturer Terran Orbital.
“The nonbinding proposal would see Lockheed acquire Terran Orbital’s outstanding common stock at $1 a share in cash, as well as pay $70 million for Terran’s outstanding warrants and assume the company’s $313 million in outstanding debt,” the filing stated.
This offer would value Terran Orbital at just below $600 million, with Terran Orbital’s stock closing at $1.07 a share on Friday. The company had initially gone public via a SPAC in early 2022 at a valuation of $1.8 billion. However, like many space stocks, Terran Orbital, despite being yet unprofitable, has encountered challenges due to the evolving risk environment in the market.
Lockheed Martin already holds a significant stake in Terran Orbital, possessing 28.3% of its shares as of Friday. The defense giant had initially invested during the company’s SPAC process and further increased its stake in late 2022.
In its letter to Terran Orbital management, Lockheed highlighted its status as the company’s largest revenue-generating customer.
