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Lockheed Martin makes offer for Terran Orbital

March 4, 2024

By Chris Forrester

Boca Raton-based Terran Orbital builds small-to-midsized satellites. Its order book includes 300 satellites for Rivada Networks, it has contracts in place with the European Space Agency (ESA) and NASA’s Space development Agency. In 2023 it introduced a range of seven standardised satellite options for clients wanting a speedy solution for nano, micro, mini and small classes of satellites.

Lockheed Martin (L-M) is already an investor in Terran Orbital and holds 28.3 per cent of Terran’s stock, and has now made a bid to buy the complete business. The pair already share some key contracts.

L-M is offering shareholders $1 per share, a significant premium on Terran’s recent share price (typically 60-80 cents) other then the few days last week when shares jumped to $1.06-$1.10. The opening bid is in cash and worth some $600 million. When Terran went public in early 2022 it was valued at $1.8 billion. The offer will pay off Terran’s existing warrants and assume responsibility for Terran’s $313 million of outstanding debt.

An L-M statement said: “The terms and signing of the Proposed Transaction remain subject to certain conditions, including completion of a due diligence review, negotiation and agreement of transaction structure and transaction documents, and approval of the Proposed Transaction by LMC and by the Issuer’s board of directors and shareholders. No assurance can be given that definitive transaction agreements with respect to the Proposal will be entered into, the terms or conditions of any such agreements, or whether the Proposed Transaction will eventually be consummated.”

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