Terran Orbital’s banner above the New York Stock Exchange on March 28, 2022.
Earth orbital
Lockheed Martin has submitted an offer to acquire the spacecraft manufacturer Earth orbitalthe defense giant revealed in a securities filing on Friday.
The non-binding proposal would see Lockheed acquire Terran Orbital’s outstanding common stock for $1 per share in cash, as well as pay $70 million for Terran’s outstanding warrants and assume the company’s $313 million in outstanding debt. society.
Overall, the offering values Terran Orbital at just under $600 million. Terran Orbital shares closed at $1.07 per share on Friday.
Terran Orbital did not immediately respond to CNBC’s request for comment.
Sign up here to receive weekly editions of CNBC’s Investing in Space newsletter.
The small spacecraft maker went public via a SPAC in early 2022 at a $1.8 billion valuation. Like many space stocks, the still unprofitable company has been hit hard by the market’s changing risk environment.
Lockheed Martin is already a significant shareholder in Terran Orbital, with a 28.3% stake as of Friday, having bought during the company’s SPAC process and again in late 2022.
Additionally, Lockheed noted in its letter to Terran Orbital management that the defense giant “continues to be Terran’s largest revenue generating customer accounting.”
Don’t miss these stories from CNBC PRO: