Lockheed Martin submitted a bid to acquire spacecraft manufacturer Terran Orbital, the defense giant revealed in a securities filing on Friday.
The non-binding proposal would see Lockheed acquire Terran’s outstanding common stock at $1 a share in cash, as well as pay $70 million for Terran’s outstanding warrants and assume the company’s $313 million in outstanding debt.
Together, the offer values Terran Orbital at just below $600 million.
Terran Orbital stock closed at $1.07 a share on Friday.
The small spacecraft maker went public via a SPAC in early 2022 at a $1.8 billion valuation. Like many space stocks, the yet-unprofitable company has been hit hard by the shifting risk environment in the market.
Lockheed Martin is already a significant stakeholder in Terran, having bought in during the company’s SPAC process and again in late 2022.
