Lockheed Martin looks to acquire spacecraft maker Terran Orbital for nearly $600 million

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Terran Orbital’s banner above the New York Stock Exchange on March 28, 2022.

Terran Orbital

Lockheed Martin submitted a bid to acquire spacecraft manufacturer Terran Orbital, the defense giant revealed in a securities filing on Friday.

The nonbinding proposal would see Lockheed acquire Terran Orbital’s outstanding common stock at $1 a share in cash, as well as pay $70 million for Terran’s outstanding warrants and assume the company’s $313 million in outstanding debt.

Together, the offer values Terran Orbital at just below $600 million. Terran Orbital stock closed at $1.07 a share on Friday.

Terran Orbital did not immediately respond to CNBC’s request for comment.

The small spacecraft maker went public via a SPAC in early 2022 at a $1.8 billion valuation. Like many space stocks, the yet-unprofitable company has been hit hard by the shifting risk environment in the market.

Lockheed Martin is already a significant stakeholder in Terran Orbital, with a 28.3% stake as of Friday, having bought in during the company’s SPAC process and again in late 2022.

Additionally, Lockheed noted in its letter to Terran Orbital management that the defense giant “continues to be Terran’s largest revenue generating customer accounting.”

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