Lockheed Martin Plans To Acquire Orbital Terran
JAKARTA Lockheed Martin, aerospace company from the US, plans to acquire a small satellite manufacturer called Terran Orbital. This acquisition is worth more than $500 million.
Citing from theSpacenews report, this acquisition plan has been running since the end of last year. They have been discussing sales and strategic alternatives since December. This discussion was facilitated by investment firm Jefferies LLC.
After several months of discussion, Lockheed finally submitted an acquisition application letter to the US Securities and Exchange Commission (SEC). In the letter, Lockheed revealed several offers they would give to Terran.
The company said it would pay $1 (IDR 15,700) for each of Terran's shares so that the company's value would be under 200 million US dollars (IDR 3.1 trillion). In addition, Lockheed will also buy a share wargan and bear the debt of Terran Orbital.
"More than 70 million US dollars (Rp1 trillion) in cash for the circulating Terran wargan. The assumption or repayment of Terran's current debt liabilities is US$313 million (Rp4.9 trillion) on September 30, 2023," Lockheed wrote in his letter.
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Lockheed said that this acquisition would provide a very attractive opportunity for his company. Lockheed also feels that Terran's business is in line with the growth priorities expected by his company.
"Terran represents an exciting opportunity for Lockheed Martin. Terran's superior capabilities and business momentum are aligned with one of Lockheed Martin Space's strategic growth priorities and this transaction will accelerate the strategy," added Lockheed.
Lockheed Martin and Terran Orbital have been working together since 2017. The two have mutually beneficial relationships after Lockheed participated in the Terran Orbital series A round. Lockheed has also invested in Terran in 2022.
During their partnership, Lockheed used the Orbital Terran bus for several programs. According to Lockheed, Terran provides very impressive satellite solutions, both for governments and commercial customers.
" Lockheed Martin's long-standing work relationship with Terran and our position as Terran's largest customer, underlies our belief in the strong cultural harmony of the parties and our ability to quickly and successfully integrate Terran and his people with Lockheed Martin," explains Lockheed.