Lockheed Martin (NYSE: LMT) has dropped its plans to buy small satellite manufacturer Terran Orbital (NYSE: LLAP) for more than $500 million, SpaceNews reported Thursday.
The Bethesda, Maryland-based aerospace and defense contractor confirmed to SpaceNews that it will no longer pursue its offer to acquire Terran Orbital.
“We are committed to supporting Terran Orbital and other essential suppliers in the defense industrial base, as we maintain our momentum to deliver the best solutions to our customers for decades to come,” Lockheed said in a statement to the publication.
In early March, Lockheed offered to pay $1 for each share of Terran Orbital’s outstanding common stock and proposed to purchase the satellite company’s outstanding stock warrants for more than $70 million and repay or assume $313 million in debt.
In 2022, Lockheed became a major investor in Terran Orbital after investing $100 million to support the latter’s efforts to expand its satellite manufacturing capabilities.
Terran Orbital said its strategic review is ongoing, allowing it “to explore all options.”
“We value Lockheed Martin’s partnership and look forward to continued collaboration under our Strategic Cooperation Agreement which runs through 2035,” Terran Orbital said in a statement published Thursday.
