Lockheed Martin to Acquire Terran Orbital
Lockheed Martin [NYSE: LMT] has announced a definitive agreement to acquire Terran Orbital [NYSE: LLAP], a leader in satellite-based solutions for aerospace and defense industries, for an enterprise value of approximately $450 million. The acquisition aims to expand Lockheed Martin's advanced satellite manufacturing and responsive space capabilities. Terran Orbital brings high throughput, robotic manufacturing capacity and high-performing modular space vehicle designs to the table.
The transaction, expected to close in Q4 2024, involves Lockheed Martin acquiring Terran Orbital for $0.25 in cash per share and retiring its existing debt. A new $30 million working capital facility has been established. Upon closing, Terran Orbital will remain a commercial merchant supplier to the industry. The acquisition builds on a seven-year working relationship and aligns with Lockheed Martin Space's strategic plans to meet customer demands for advanced technology and faster product development.
Lockheed Martin [NYSE: LMT] ha annunciato di aver raggiunto un accordo definitivo per acquisire Terran Orbital [NYSE: LLAP], leader nelle soluzioni satellitari per i settori aerospaziale e della difesa, per un valore aziendale di circa $450 milioni. L'acquisizione mira ad ampliare le capacità di produzione di satelliti avanzati e di spazio reattivo di Lockheed Martin. Terran Orbital porta in dote una capacità di produzione robotica ad alta produttività e design di veicoli spaziali modulari altamente performanti.
La transazione, prevista per chiudere nel Q4 2024, prevede che Lockheed Martin acquisisca Terran Orbital per $0.25 in contante per azione e estingua il debito esistente. È stata stabilita una nuova linea di capitale circolante di $30 milioni. Al momento della chiusura, Terran Orbital rimarrà un fornitore commerciale nel settore. Questa acquisizione si basa su una relazione di lavoro di sette anni e si allinea con i piani strategici di Lockheed Martin Space per soddisfare le esigenze dei clienti in termini di tecnologia avanzata e sviluppo più rapido dei prodotti.
Lockheed Martin [NYSE: LMT] ha anunciado un acuerdo definitivo para adquirir Terran Orbital [NYSE: LLAP], un líder en soluciones basadas en satélites para las industrias aeroespacial y de defensa, por un valor empresarial de aproximadamente $450 millones. La adquisición tiene como objetivo expandir las capacidades de fabricación de satélites avanzados y de espacio reactivo de Lockheed Martin. Terran Orbital aporta capacidad de fabricación robótica de alto rendimiento y diseños de vehículos espaciales modulares de alto rendimiento.
La transacción, que se espera cierre en el cuarto trimestre de 2024, involucra a Lockheed Martin adquiriendo Terran Orbital por $0.25 en efectivo por acción y cancelando su deuda existente. Se ha establecido una nueva facilidad de capital de trabajo de $30 millones. Al cerrarse el acuerdo, Terran Orbital seguirá siendo un proveedor comercial para la industria. La adquisición se basa en una relación de trabajo de siete años y se alinea con los planes estratégicos de Lockheed Martin Space para satisfacer la demanda de los clientes de tecnología avanzada y un desarrollo de productos más rápido.
록히드 마틴 [NYSE: LMT]은 항공우주 및 방위 산업을 위한 위성 기반 솔루션의 선두주자인 테란 오비탈 [NYSE: LLAP]을 약 $450 백만의 기업 가치를 지불하여 인수하기로 한 확정 계약을 발표했습니다. 이번 인수는 록히드 마틴의 고급 위성 제조 및 반응형 우주 능력을 확장하는 것을 목표로 하고 있습니다. 테란 오비탈은 높은 처리량과 로봇 제조 능력, 고성능 모듈형 우주선 설계를 제공합니다.
2024년 4분기 중에 마감될 것으로 예상되는 이번 거래는 록히드 마틴이 테란 오비탈을 주당 $0.25 현금으로 인수하고 기존 부채를 상환하는 내용을 포함합니다. 새로운 $30 백만 운영 자본 시설이 마련되었습니다. 거래가 마감되면 테란 오비탈은 해당 산업의 상업적 공급업체로 남게 됩니다. 이번 인수는 7년 간의 협력 관계를 바탕으로 하며, 록히드 마틴 스페이스의 전략적 계획에 따라 고객의 요구를 충족시킬 수 있는 첨단 기술과 신속한 제품 개발을 목표로 하고 있습니다.
Lockheed Martin [NYSE: LMT] a annoncé un accord définitif pour acquérir Terran Orbital [NYSE: LLAP], un leader des solutions basées sur des satellites pour les secteurs aérospatiaux et de la défense, pour une valeur d'entreprise d'environ $450 millions. Cette acquisition vise à élargir les capacités de fabrication de satellites avancés et de réactivité spatiale de Lockheed Martin. Terran Orbital apporte une capacité de fabrication robotisée à fort rendement et des conceptions de véhicules spatiaux modulaires performants.
La transaction, qui devrait se conclure au quatrième trimestre 2024, implique que Lockheed Martin acquiert Terran Orbital pour $0,25 en espèces par action et annule sa dette existante. Une nouvelle facilité de fonds de roulement de 30 millions de dollars a été mise en place. À la clôture, Terran Orbital demeurera un fournisseur commercial pour l'industrie. Cette acquisition repose sur une relation de travail de sept ans et s'aligne avec les plans stratégiques de Lockheed Martin Space pour répondre aux demandes des clients en matière de technologie avancée et de développement produit plus rapide.
Lockheed Martin [NYSE: LMT] hat eine endgültige Vereinbarung zur Übernahme von Terran Orbital [NYSE: LLAP] bekannt gegeben, einem führenden Unternehmen im Bereich satellitengestützter Lösungen für die Luft- und Raumfahrt- sowie Verteidigungsindustrie, mit einem Unternehmenswert von rund $450 Millionen. Mit der Übernahme sollen die fortschrittlichen Satellitenfertigungskapazitäten und die reaktionsschnellen Raumfahrtmöglichkeiten von Lockheed Martin erweitert werden. Terran Orbital bietet hohe Produktionskapazitäten durch robotergestützte Fertigung und leistungsstarke modulare Raumfahrzeugdesigns.
Die Transaktion, die im vierten Quartal 2024 abgeschlossen werden soll, sieht vor, dass Lockheed Martin Terran Orbital für $0,25 in bar pro Aktie erwirbt und die bestehende Verschuldung zurückführt. Es wurde eine neue $30 Millionen Betriebsmittelfazilität eingerichtet. Nach dem Abschluss bleibt Terran Orbital ein kommerzieller Anbieter für die Industrie. Die Übernahme basiert auf einer siebenjährigen Zusammenarbeit und passt zu den strategischen Plänen von Lockheed Martin Space, um die Kundennachfrage nach fortschrittlicher Technologie und schnelleren Produktentwicklungen zu erfüllen.
- Acquisition expands Lockheed Martin's satellite manufacturing and space capabilities
- Terran Orbital brings high throughput, robotic manufacturing capacity
- Transaction value of $450 million indicates significant investment in growth
- $30 million working capital facility established to support operations
- Builds on existing successful partnership between the two companies
- Potential for synergies and accelerated business growth
- Acquisition price of $0.25 per share may be viewed as low by some Terran Orbital shareholders
- Integration challenges may arise during the merger process
- Regulatory approvals could potentially delay the closing of the transaction
Insights
The acquisition of Terran Orbital by Lockheed Martin for
The transaction's structure, including debt retirement and a new
This acquisition marks a significant shift in the satellite manufacturing landscape. Terran Orbital's high-throughput, robotic manufacturing capabilities complement Lockheed Martin's established space presence, potentially accelerating innovation in satellite production. The deal could enable faster product development and more competitive pricing, important in the rapidly evolving space industry.
The retention of Terran Orbital as a commercial merchant supplier post-acquisition is noteworthy, suggesting Lockheed Martin aims to maintain Terran's diverse customer base while leveraging its technologies. This strategy could help Lockheed Martin expand its market reach beyond traditional government contracts, tapping into the growing commercial space sector.
This acquisition reflects the ongoing consolidation trend in the aerospace and defense industry, as larger players seek to strengthen their positions in the burgeoning space market. Lockheed Martin's move to acquire a company from its venture capital portfolio demonstrates a successful investment strategy and could inspire similar actions from competitors.
The transaction's timing, amidst growing interest in space-based technologies and services, positions Lockheed Martin to capitalize on increasing demand for satellite solutions. However, investors should monitor potential regulatory scrutiny, as consolidation in the defense sector often attracts attention from antitrust authorities. The deal's success will largely depend on effective integration and leveraging of Terran Orbital's capabilities within Lockheed Martin's broader space strategy.
Strategic Acquisition Reinforces Lockheed Martin's Commitment to Expanding Advanced Satellite Manufacturing and Responsive Space Capabilities
Terran Orbital brings a high throughput, robotic manufacturing capacity and high-performing modular space vehicle designs. Combined with Lockheed Martin's record of performance and innovation, this transaction will usher in an even broader range of capabilities and value for customers. Lockheed Martin uses Terran Orbital's satellites for its work, most notably with the Space Development Agency's Transport and Tracking Layer programs, and in several of its self-funded technology demonstrations.
"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."
The transaction stands to pave a path for further advancement, as Lockheed Martin continues to invest in technology, people, and capacity to support future customer needs.
"This transaction combines our strengths and expertise," said 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."
Transaction Details
The enterprise value of the transaction is approximately
The transaction is expected to close in fourth quarter of 2024 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.
Proven Spacecraft Portfolio and Technology
Terran Orbital has a track record of supporting more than 80 missions over the past decade for government and commercial customers with complex mission requirements, from low earth orbit to the Moon and beyond. As of today, Lockheed Martin is Terran Orbital's largest customer. This longstanding working relationship between the companies underpins a strong cultural alignment and ability to recognize synergies between the two businesses.
Terran Orbital joined the Lockheed Martin Ventures (LM Ventures) portfolio – a fund that makes investments in technology innovations to drive growth in existing, adjacent and new segments for the company – with an initial investment in 2017. LM Ventures has since made two additional investments in Terran Orbital in 2020 and 2022. This marks the first LM Ventures company that Lockheed Martin has sought to acquire since founding the fund in 2007.
About Lockheed Martin
Lockheed Martin is a global defense technology company driving innovation and advancing scientific discovery. Our all-domain mission solutions and 21st Century Security vision accelerate the delivery of transformative technologies to ensure those we serve always stay ahead of ready. More information at www.Lockheedmartin.com.
About Terran Orbital
Terran Orbital is a leading manufacturer of satellite products primarily serving the aerospace and defense industries. Terran Orbital provides end-to-end satellite solutions by combining satellite design, production, launch planning, mission operations, and on-orbit support to meet the needs of the most demanding military, civil, and commercial customers. Learn more at www.terranorbital.com.
Additional Information and Where to Find It
This communication may be deemed to be solicitation material in respect of the proposed acquisition of Terran Orbital Corporation ("Terran Orbital") by Lockheed Martin Corporation ("Lockheed Martin"). In connection with the proposed transaction, Terran Orbital intends to file with the Securities and Exchange Commission (the "SEC") a proxy statement on Schedule 14A. Promptly after filing its definitive proxy statement with the SEC, Terran Orbital intends to mail the definitive proxy statement and a proxy card to each stockholder entitled to vote at the special meeting relating to the proposed transaction. STOCKHOLDERS OF TERRAN ORBITAL ARE URGED TO READ THE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS IN CONNECTION WITH THE PROPOSED TRANSACTION THAT TERRAN ORBITAL FILES WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. The definitive proxy statement, the preliminary proxy statement and any other documents filed by Terran Orbital with the SEC may be obtained free of charge at the SEC's website at www.sec.gov or at Terran Orbital's website at www.terranorbital.com.
Participants in the Solicitation
Terran Orbital, Lockheed Martin and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Terran Orbital's stockholders with respect to the proposed transaction. Information regarding the identity of participants in the solicitation of proxies, and their direct or indirect interests in the proposed transaction, by security holdings or otherwise, will be set forth in the proxy statement and other materials to be filed with the SEC in connection with the proposed transaction. Additional information about Terran Orbital's directors and executive officers and their ownership of Terran Orbital common stock is set forth in Terran Orbital's definitive proxy statement for its 2024 annual meeting of stockholders filed with the SEC on April 10, 2024 (the "Terran Orbital 2024 Proxy Statement"), under "Board of Directors and Corporate Governance," "Executive Officers," "Executive Compensation" and "Security Ownership of Certain Beneficial Owners and Management." To the extent that holdings of Terran Orbital's securities by directors and executive officers have changed since the amounts disclosed in the Terran Orbital 2024 Proxy Statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 and Statements of Changes in Ownership on Form 4 filed with the SEC. Information about Lockheed Martin's directors and executive officers is set forth in Lockheed Martin's definitive proxy statement for its 2024 annual meeting of stockholders filed with the SEC on March 15, 2024 (the "Lockheed Martin 2024 Proxy Statement"), under "Director Nominees," "Executive Compensation" and "Security Ownership of Management and Certain Beneficial Owners." To the extent holdings of Lockheed Martin's securities by directors and executive officers have changed since the amounts disclosed in the Lockheed Martin 2024 Proxy Statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3 and Statements of Changes in Ownership on Form 4 filed with the SEC. You can obtain free copies of these documents at the SEC's website at www.sec.gov or by accessing the respective companies' websites at www.terranorbital.com (Terran Orbital) and www.lockheedmartin.com (Lockheed Martin).
Forward-Looking Statements
This news release contains statements that, to the extent they are not recitations of historical fact, constitute "forward-looking statements" within the meaning of the federal securities laws, and are based on Lockheed Martin's and Terran Orbital's current expectations and assumptions, including, among other things, statements regarding the proposed transaction and the expected benefits of the proposed transaction; the anticipated timing of the proposed transaction and financing of the proposed transaction; and the future performance of Lockheed Martin's or of Terran Orbital's business if the proposed transaction is completed. The words "believe," "estimate," "anticipate," "project," "intend," "expect," "plan," "outlook," "will," "should," "could," "scheduled," "forecast," and similar expressions are intended to identify forward-looking statements. There can be no assurance that the proposed transaction or any other future events will occur as anticipated, if at all, or that actual results will be as expected. These statements are not guarantees of future performance and are subject to risks and uncertainties. Actual results may differ materially due to factors such as: the failure to obtain, delays in obtaining, or adverse conditions contained in any required regulatory or other approvals for consummation of the proposed transaction, the possibility that Terran Orbital stockholders may not approve the proposed transaction; the failure to consummate or a delay in consummating the proposed transaction for other reasons; the occurrence of any event, change or other circumstance or condition that could give rise to the termination of the merger agreement related to the proposed transaction; Lockheed Martin's or Terran Orbital's business being disrupted due to transaction-related uncertainty; the diversion of Terran Orbital's management's or employees' attention during the pendency of the proposed transaction from Lockheed Martin's or Terran Orbital's ongoing business operations and other opportunities; the failure to successfully and timely integrate Terran Orbital and realize the benefits of the proposed transaction; the risk of litigation relating to the proposed transaction; competitive responses to the proposed transaction; unexpected liabilities, costs, charges or expenses resulting from the proposed transaction; and potential adverse reactions or changes to business relationships from the announcement or completion of the proposed transaction. These are only some of the factors that may affect the forward-looking statements contained in this news release. For a discussion identifying additional important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, see Lockheed Martin's filings with the SEC, including, but not limited to, "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" in Lockheed Martin's most recent Annual Report on Form 10-K and subsequent quarterly reports on Form 10-Q, and Terran Orbital's filings with the SEC, including, but not limited to, Terran Orbital's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, filed with the SEC on April 1, 2024, its Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 filed with the SEC on August 12, 2024, and the prospectus supplements dated September 18, 2023 and July 23, 2024, each related to its Registration Statement on Form S-3, as amended (File No. 333-271093), which was declared effective by the SEC on April 18, 2023. Lockheed Martin's filings may be accessed through the investor relations page of its website, www.lockheedmartin.com/investor or through the website maintained by the SEC at www.sec.gov. Terran Orbital's filings may be accessed through the investor relations page of its website, www.investors.terranorbital.com or through the website maintained by the SEC at www.sec.gov. Except where required by applicable law, each of Lockheed Martin and Terran Orbital expressly disclaims a duty to provide updates to forward-looking statements after the date of this news release to reflect subsequent events, changed circumstances, changes in expectations, or the estimates and assumptions associated with them. The forward-looking statements in this news release are intended to be subject to the safe harbor protection provided by the federal securities laws.
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SOURCE Lockheed Martin
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