Lockheed to Buy Terran Orbital for $450M; Robert Lightfoot Quoted

Lockheed Martin (NYSE: LMT) has agreed to acquire satellite maker Terran Orbital (NYSE: LLAP) for approximately $450 million to expand its satellite manufacturing and responsive space capabilities.

The Bethesda, Maryland-based aerospace and defense contractor said Thursday it expects the transaction to conclude in the fourth quarter of 2024, subject to regulatory clearances, approval by Terran Orbital stockholders and other customary closing conditions.

Upon the deal’s closing, Boca Raton, Florida-based Terran Orbital will continue to be a commercial supplier of satellite systems to industry.

Robert Lightfoot, president of Lockheed Martin Space, said the company has worked with Terran Orbital on various missions for more than seven years.

“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,” added Lightfoot, a three-time Wash100 awardee.

Lockheed stated that it will buy Terran Orbital’s outstanding common stock at $0.25 in cash per share and retire the company’s existing debt as part of the transaction, which includes the establishment of a $30 million working capital facility.

Access to Terran Orbital’s Satellite Portfolio and Technology

With the transaction, Lockheed will broaden its portfolio with the addition of Terran Orbital’s robotic manufacturing capacity and modular space vehicle designs.

The defense technology company has been using Terran Orbital’s satellites in its technology demonstrations and its work on the Space Development Agency’s Transport and Tracking Layer programs.

In the past 10 years, Terran Orbital has supported more than 80 missions of military, civilian agencies and commercial customers.

Lockheed initially invested in the spacecraft manufacturer in 2017 through its LM Ventures fund, followed by two additional investments in 2020 and 2022.

In March, Lockheed proposed to purchase Terran Orbital for more than $500 million but decided to withdraw its acquisition plans two months later.