Lockheed Martin Eyes Acquisition of Terran Orbital
Lockheed Martin has expressed interest in acquiring spacecraft manufacturer Terran Orbital, as disclosed in a recent securities filing. The proposed deal from the defense giant includes purchasing Terran Orbital’s outstanding common stock at $1 per share in cash, along with an additional $70 million for Terran’s outstanding warrants and taking on the company’s $313 million debt. This proposition values Terran Orbital at just under $600 million, slightly below its closing stock price of $1.07 per share.
Terran Orbital, a recently public company that went public through a SPAC in early 2022 at a valuation of $1.8 billion, has struggled due to the challenging market conditions affecting many space-related businesses. Despite being yet unprofitable, Terran Orbital has caught the eye of Lockheed Martin, which already holds a substantial 28.3% stake in the company. Lockheed Martin became an investor during the SPAC process and further increased its ownership in late 2022.
In a letter to Terran Orbital’s management, Lockheed highlighted its status as the company’s primary revenue contributor. This existing relationship between Lockheed Martin and Terran Orbital may play a pivotal role in the potential acquisition, demonstrating the strategic alignment between the two entities.
Terran Orbital has not responded to requests for comment on Lockheed Martin’s proposal at this time. As the space industry continues to evolve and expand, partnerships and acquisitions like this one could reshape the landscape for both companies involved. Stay tuned for further developments on this intriguing potential merger.