Lockheed Martin could buy satellite maker Terran Orbital, taking the smaller company private and potentially saving it from a cash crunch amid heavy debt.
Terran Orbital itself wasn’t founded until 2013, but its history goes back to the late 90s, when it developed CubeSats, which became the new flagship of small satellites. More recently, the company merged with a SPAC in 2022 and went public at a valuation of $1.8 billion.
The two companies already had a relationship, with Lockheed Martin Ventures having made multiple investments in Terran Orbital dating back to 2017. In fact, Lockheed already owned a 28.3% stake in Terran Orbital, and Lockheed contracts account for roughly 70% of Terran Orbital’s revenue and 91% of its backlog.
So Lockheed certainly had some incentive to keep the satellite manufacturer from going under. It tried to acquire Terran Orbital earlier this year, but the smaller company used a “poison pill” to block the deal.
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