Lockheed Martin (NYSE: LMT) has disclosed a nonbinding proposal to acquire spacecraft manufacturer Terran Orbital (NYSE: LLAP) for more than $500 million, SpaceNews reported Friday.
The defense contractor offered to pay $1 in cash for each share of Terran Orbital’s outstanding common stock, buy the company’s outstanding warrants for over $70 million in aggregate cash and repay or assume debt liabilities of $313 million.
In a Securities and Exchange Commission filing on Friday, Lockheed said Terran Orbital would bring capabilities that align with one of the strategic growth priorities of the former’s space business segment.
Lockheed is a significant stakeholder in Terran Orbital, owning more than 30 percent stake in the small satellite company through a $100 million investment in 2022.
Boca Raton, Florida-headquartered Terran Orbital also produces buses for the transport layer satellites Lockheed develops for the Space Development Agency’s Proliferated Warfighter Space Architecture constellation.
Terran Orbital’s contracts with Lockheed account for 81 percent of its backlog as of the end of 2023.
“In addition to being the largest historical revenue generating customer we are confident that we will continue to be the largest revenue generating customer for Terran for the foreseeable future,” Lockheed wrote in the SEC letter.
Join the Potomac Officers Club’s 2024 Space Summit on March 5 to learn how new technologies, commercial investments and adversarial threats are shaping the future of space. Click here to register!
