Lockheed Martin Offers to Acquire Terran Orbital for $600 Million

Terran Orbital, a spacecraft manufacturer, has received a bid from defense giant Lockheed Martin to acquire the company. The proposal, revealed in a securities filing on Friday, includes an offer to purchase Terran Orbital’s outstanding common stock at $1 per share in cash. Additionally, Lockheed Martin has agreed to pay $70 million for Terran Orbital’s outstanding warrants and take on the company’s $313 million debt.

The total value of the offer comes to just under $600 million, with Terran Orbital’s stock closing at $1.07 per share on Friday. As of now, Terran Orbital has not responded to CNBC’s request for comment on the proposal.

Terran Orbital, which went public in early 2022 at a $1.8 billion valuation through a SPAC, has faced challenges in the market due to the shifting risk environment. Like many space stocks, the company is yet to turn a profit.

It is noteworthy that Lockheed Martin already holds a 28.3% stake in Terran Orbital and has been a significant stakeholder since the company’s SPAC process. The defense giant has also invested an additional $100 million in late 2022. In its letter to Terran Orbital management, Lockheed Martin emphasized its status as the company’s largest revenue-generating customer.

This potential acquisition by Lockheed Martin reflects the continued interest of major players in the space industry to consolidate their positions and tap into the growing market opportunities. Business Today will keep you updated on any further developments in this story.

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