Lockheed Martin Seeks Acquisition of Spacecraft Manufacturer Terran Orbital for Nearly $600 Million

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.

Terran Orbita
Terran Orbital, previously valued at $1.8 billion, faces market challenges despite Lockheed’s 28.3% stake. (Credits: South Florid Business and Wealth)

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
Lockheed Martin asserts its status as Terran Orbital’s largest revenue-generating customer in the acquisition bid. (Credits: Lockheed Martin)

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.

Sajda Parveen
Sajda Parveen
Sajda Praveen is a market expert. She has over 6 years of experience in the field and she shares her expertise with readers. You can reach out to her at [email protected]
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