Lockheed Martin is sweeping in to save satellite manufacturer Terran Orbital from its dwindling cash reserves and mounting debt, in a $450 million take-private deal that’s expected to close before the end of the year.
The defense giant will buy Terran for $0.25 per share and retire its existing debt. Lockheed, which holds a 28.3% stake in Terran Orbital, strategically invested in Terran Orbital through its Lockheed Martin Ventures investing arm in 2017, 2020 and 2022. This will be the first LMV portfolio company that Lockheed Martin will acquire since the fund was founded in 2007. Satellite bus contracts for Lockheed represent around 70% of the company’s revenue and 91% of the company’s backlog.
Read more: techcrunch.com