Lockheed Martin (L-M) has signed a definitive agreement to acquire Terran Orbital. L-M was already a significant investor and client of Terran. The enterprise value of the transaction is about $450 million (€411m).

L-M will acquire Terran Orbital for $0.25 in cash for each outstanding share of common stock and retire its existing debt. This transaction also provides for Lockheed Martin and other current Terran Orbital creditors establishing a new, $30 million working capital facility that has been put in place as of signing.

“We’ve worked with Terran Orbital for more than seven years on a variety of successful missions,” said Robert Lightfoot, president, Lockheed Martin Space. “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.”

“This transaction combines our strengths and expertise,” added Marc Bell, chairman, CEO, and co-founder of Terran Orbital. “This move will open new opportunities for growth and innovation, and we couldn’t be more excited about the future. Access to Lockheed Martin’s incredible engineers and world class facilities will only accelerate our business plan to provide low-cost, high-value solutions to our ever-growing customer base.”

The transaction is expected to close in Q4 and is subject to the satisfaction of customary closing conditions, including regulatory and Terran Orbital stockholder approvals. Upon closing, Terran Orbital will remain a commercial merchant supplier to industry.

The cash injection solves the crunch that Terran was facing. However, there was no mention of Terran’s major client Rivada Space Networks for whom it is building a 300 satellite constellation.

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Tags: Lockheed Martin, Rivada Space Networks, Terran Orbital