Lockheed Martin is set to acquire satellite manufacturer Terran Orbital, taking the company private and potentially saving it from a severe cash crunch and significant debt.
Terran Orbital, though officially established in 2013, traces its origins back to the late 1990s with the development of the CubeSat, which pioneered a new era of small satellites. The company went public in 2022 through a merger with a SPAC, which valued Terran Orbital at $1.8 billion.
The relationship between the two companies isn’t new – Lockheed Martin Ventures has been investing in Terran Orbital since 2017. Currently, Lockheed owns 28.3% of Terran Orbital, and Lockheed’s contracts account for around 70% of Terran Orbital’s revenue and 91% of its backlog.
Given these connections, Lockheed Martin had strong incentives to prevent Terran Orbital from collapsing. Earlier this year, Lockheed attempted to acquire the company, but Terran Orbital to block the takeover at that time.
