Lockheed Martin is buying Terran Orbital, the company announced Thursday.
The agreement will see Lockheed acquire Terran at an enterprise valuation of nearly $450 million, below Lockheed's previous bid in March.Lockheed would acquire Terran Orbital's outstanding common stock at 25 cents a share in cash. Terran's stock closed at 40 cents a share on Wednesday.
Expected to close in the fourth quarter, the deal would help Terran dodge a cash-and-debt cliff that the company is staring down. Terran's cash reserves were less than $15 million at the end of July, it reported in. Like several other space stocks that debuted in the past few years, the yet-unprofitable company has been hit hard by the shifting risk environment in the market.. Lockheed Martin is also an important customer for Terran, making up 70% of Terran's $30.
On Monday, Terran said it was removing the Rivada deal from its total contract backlog — which reduced the backlog of orders by 88%, from $2.7 billion to $312.7 million. Of its non-Rivada orders, 91% of Terran's contracts are"programs associated with Lockheed Martin."
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