At Extreme Investor Network, we bring you the latest and most insightful business news to keep you informed and ahead of the game. Today, we dive into the recent news of Lockheed Martin’s acquisition of Terran Orbital, a significant move in the defense and space industry.
Lockheed Martin, a major player in the defense sector, has announced its purchase of Terran Orbital, a struggling spacecraft manufacturer. The deal will see Lockheed acquire Terran at an enterprise valuation of nearly $450 million, below their previous bid of $600 million in March. This acquisition will take Terran private and help the company navigate financial challenges.
Terran Orbital, which went public via a special purpose acquisition company earlier this year at a valuation of $1.8 billion, has been facing cash and debt issues. With cash reserves of less than $15 million and approximately $300 million in debt, the acquisition by Lockheed provides a lifeline for Terran.
Lockheed Martin is not only acquiring Terran Orbital but is also a significant stakeholder in the company, having invested during its SPAC process and again in late 2022. Additionally, Lockheed is a key customer for Terran, accounting for 70% of the company’s revenue in the second quarter.
Terran’s future prospects were bolstered by a spacecraft production contract with Rivada Space Networks, valued at $2.4 billion for 300 satellites. However, the deal has yet to significantly impact Terran’s financials, with only $6.2 million recognized from the agreement in the first half of this year. Despite this, Terran is poised for growth, with 91% of its non-Rivada contracts tied to programs associated with Lockheed Martin.
As the deal between Lockheed Martin and Terran Orbital progresses, it will be interesting to see how this acquisition shapes the future of both companies in the competitive space industry. Stay tuned to Extreme Investor Network for more updates and insights on the latest business news and trends.