The agreement follows nearly six months after Lockheed Martin initially proposed acquiring Terran Orbital.
Lockheed Martin has announced a definitive agreement to acquire Terran Orbital, a global provider of satellite-based solutions primarily serving the aerospace and defence sectors.
Terran Orbital’s expertise in high-throughput, robotic manufacturing and advanced modular space vehicle designs will complement Lockheed Martin’s reputation for innovation and performance. This acquisition is set to expand the range of capabilities and value offered to customers. Lockheed Martin has already utilised Terran Orbital’s satellites in key projects, including the Space Development Agency’s Transport and Tracking Layer programmes and various self-funded technology demonstrations.
Commenting on the deal, Robert Lightfoot, President of Lockheed Martin Space, said: “We’ve worked with Terran Orbital for more than seven years on a variety of successful missions. 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.”
The transaction stands to pave a path for further advancement, as Lockheed Martin continues to invest in technology, people, and capacity to support future customer needs.
Marc Bell, Chairman, CEO and co-founder of Terran Orbital, added: “This transaction combines our strengths and expertise. 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 transaction, valued at approximately $450m, includes $0.25 per share in cash for Terran Orbital’s outstanding common stock and the retirement of existing debt. Additionally, a new $30m working capital facility has been established. The deal is expected to close in the fourth quarter of 2024, pending regulatory and stockholder approvals. Post-acquisition, Terran Orbital will continue to operate as a commercial supplier to the industry.
