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U.S. defense company Lockheed Martin Corp. (LMT) entered a definitive merger agreement on August 15, 2024, to acquire satellite maker Terran Orbital Corp. (LLAP) for $450 million, including debt.
As part of the agreement, Lockheed Martin will acquire Terran Orbital for $0.25 in cash for each outstanding share of common stock, representing a discount of 37.5% from the stock’s last close.
Terran Orbital is a company based in Boca Raton, Florida, that designs, builds, and manages satellites for the aerospace and defense industries, offering complete solutions from start to finish.
Lockheed Martin is a global defense and aerospace company that builds advanced technology like aircraft, missile defense systems, and space equipment, mainly for the U.S. government and its allies around the world.
Last year, Terran’s investors had asked the satellite maker to look for strategic alternatives and look for a sale to companies like Lockheed Martin. Lockheed earlier this year had offered to buy the struggling manufacturer for $1 per share, but that deal fell through after Terran adopted a rights plan against Lockheed’s non-binding offer.
The deal is expected to close in the fourth quarter of 2024. Terran Orbital’s current EV/Sales (TTM) ratio is 2.03, above the sector median of 1.86.
Terran Orbital had gone public in 2022, through a SPAC business combination with Tailwind Two Acquisition Corp.
For more information about this merger and acquisition transaction, please visit the Deal Metrics page here:
Deal Metrics for the acquisition of Terran Orbital Corp. (LLAP) by Lockheed Martin Corp. (LMT)
The Deal Metrics page for each merger or acquisition includes:
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Editor’s Note: Baranjot Kaur contributed to this article