Lockheed Martin has agreed to acquire satellite maker Terran Orbital (NYSE:LLAP) for $450 million, offering 25 cents per share, a 37.5% discount to its last close.
The aerospace and defense giant, which has long used Terran's satellites for its Space Development Agency projects, already owns about a third of the company.
The acquisition is seen as a strategic move to bolster Lockheed's satellite capabilities, aligning with its plans for faster product development.
"We've worked with Terran Orbital (NYSE:LLAP) 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."
Terran will gain access to Lockheed’s resources, potentially accelerating its business plan.
"This transaction combines our strengths and expertise," said Marc Bell, chairman, CEO, and co-founder of Terran Orbital (NYSE:LLAP).
"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."
The deal, expected to close in the fourth quarter, includes retiring Terran's $300 million debt and establishing a $30 million capital facility.