Lockheed Martin announces $450M deal to buy satellite maker Terran Orbital

Aug. 15 (UPI) -- Lockheed Martin Thursday announced it will buy Terran Orbital, a satellite company that works with the aerospace and defense industries, in a $450 million deal.

Lockheed Martin will retire Terran's debt and pay $0.25 in cash for each outstanding common stock share of the company.

"We've worked with Terran Orbital for more than seven years on a variety of successful missions," Lockheed Martin Space President Robert Lightfoot said in a statement. "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."

Terran Orbital CEO Marc Bell said in a statement, "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."

Lockheed Martin's announcement said Terran " brings a high throughput, robotic manufacturing capacity and high-performing modular space vehicle designs."

Lockheed Martin said that, when combined with its own capacities, the acquisition of Terran Orbital will "usher in an even broader range of capabilities and value for customers."

Lockheed already owns a third of Terran Orbital. It uses Terran Orbital satellites in the Space Development Agency's Transport and Tracking Layer Programs.

Under its ownership, Lockheed said Terran will continue to act as a commercial merchant supplier of small satellites.

According to an Securities and Exchange Commission filing from Terran Orbital, Lockheed accounted for over 90% of its contracts backlog.

But that filing didn't include a $2.4 billion contract with Rivada Space Networks to make a 300-satellite constellation.

The acquisition announced Thursday comes almost six months after Lockheed Martin first proposed buying Terran Orbital. That plan included assuming $313 million in Terran Orbital debt.

The deal is expected to close in the fourth quarter of this year pending regulatory and shareholder approvals.

Lockheed Martin is a global defense technology company. Terran Orbital is a satellite manufacturer providing end-to-end satellite solutions for the aerospace and defense industries.