Lockheed Martin to purchase satellite builder Terran Orbital
Lockheed Martin today announced that it intends to purchase the satellite company Terran Orbital, of which it already owns one third of its stock.
Lockheed said Aug. 15 it would buy Terran Orbital for $0.25 per share in cash and retire the company’s existing debt. The deal, expected to close in the fourth quarter, has an enterprise value of $450 million. Shares in Terran Orbital closed Aug. 14 at $0.40.
Lockheed had six months ago offered to buy the company for $1 per share, but then withdrew the offer. It appears this new offer is intended to save the company, as Lockheed needs it. Right now 90% of Terran Orbital’s contracts are with Lockheed, and if the company goes under so do those deals.
This situation appears related to funding problems being experienced by the Rivada 300-satellite constellation. It had signed a $2.4 billion contract with Terran to build those satellites, but Terran removed that contract from its listed deals this week, suggesting that it no longer expected it to happen.
Lockheed Martin has made a strong effort in the past decade to remake itself to meet the challenges of the new space market, including entering the smallsat satellite manufacturing market. Thus it should be able to absorb Terran Orbital’s operations with little major harm to both, and much benefit.
Hat tip to BtB’s stringer Jay.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit.
The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
Lockheed Martin today announced that it intends to purchase the satellite company Terran Orbital, of which it already owns one third of its stock.
Lockheed said Aug. 15 it would buy Terran Orbital for $0.25 per share in cash and retire the company’s existing debt. The deal, expected to close in the fourth quarter, has an enterprise value of $450 million. Shares in Terran Orbital closed Aug. 14 at $0.40.
Lockheed had six months ago offered to buy the company for $1 per share, but then withdrew the offer. It appears this new offer is intended to save the company, as Lockheed needs it. Right now 90% of Terran Orbital’s contracts are with Lockheed, and if the company goes under so do those deals.
This situation appears related to funding problems being experienced by the Rivada 300-satellite constellation. It had signed a $2.4 billion contract with Terran to build those satellites, but Terran removed that contract from its listed deals this week, suggesting that it no longer expected it to happen.
Lockheed Martin has made a strong effort in the past decade to remake itself to meet the challenges of the new space market, including entering the smallsat satellite manufacturing market. Thus it should be able to absorb Terran Orbital’s operations with little major harm to both, and much benefit.
Hat tip to BtB’s stringer Jay.
On Christmas Eve 1968 three Americans became the first humans to visit another world. What they did to celebrate was unexpected and profound, and will be remembered throughout all human history. Genesis: the Story of Apollo 8, Robert Zimmerman's classic history of humanity's first journey to another world, tells that story, and it is now available as both an ebook and an audiobook, both with a foreword by Valerie Anders and a new introduction by Robert Zimmerman.
The print edition can be purchased at Amazon. from any other book seller, or direct from my ebook publisher, ebookit. The ebook is available everywhere for $5.99 (before discount) at amazon, or direct from my ebook publisher, ebookit. If you buy it from ebookit you don't support the big tech companies and the author gets a bigger cut much sooner.
The audiobook is also available at all these vendors, and is also free with a 30-day trial membership to Audible.
"Not simply about one mission, [Genesis] is also the history of America's quest for the moon... Zimmerman has done a masterful job of tying disparate events together into a solid account of one of America's greatest human triumphs."--San Antonio Express-News
The whole Rivada situation is causing a lot of issues. Terran Orbital had that on the books for some time without substantial payment. I wonder if Lockheed will be a bit more aggressive in getting the contracts paid for or implement a separation fee to end them. I hope the TO people will still have their jibs when all this is over.
I wonder if Lockheed tries to back out of this verbal agreement because the stock price dropped below their offer by 60%?
And if they do will the courts force them to pay the agreed price like they did to Musk with X?