American aerospace and defense corporation, Lockheed Martin, said Thursday it signed a definitive agreement to acquire satellite manufacturer Terran Orbital for $450 million.
The deal to acquire Terran Orbital, which manufactures satellites mostly for the aerospace and defense industries, is expected to bring a broader range of capabilities and value for customers, Lockheed Martin said in a statement.
"We've worked with Terran Orbital for more than seven years on a variety of successful missions," said Robert Lightfoot, president of Lockheed Martin Space. "Their capabilities, talent and business momentum align with Lockheed Martin Space's strategic plans."
"Our customers require advanced technology and even faster product development, and that's what we can achieve together," he added.
Terran Orbital focuses on robotic manufacturing and high-performing modular space vehicle designs.
Marc Bell, chairman, CEO and co-founder of Terran Orbital, said the deal will open new opportunities for growth and innovation by combining the companies' strengths and expertise.
"Access to Lockheed Martin's incredible engineers and world class facilities will only accelerate our business plan to provide low-cost, high-value solutions to our ever-growing customer base," he said.
After the announcement of the deal, shares of Terran Orbital plummeted 40% on The New York Stock Exchange.
Lockheed Martin shares have been fluctuating during the session, while they were down by less than 1% around 2.20 p.m. EDT.
As part of the agreement, Lockheed Martin and other current Terran Orbital creditors will establish a new $30 million capital facility.
The deal is expected to close in the fourth quarter of this year.
Terran Orbital has supported more than 80 missions in the past decade for government and commercial customers, from low earth orbit to the moon, according to the statement.
Lockheed Martin is Terran Orbital's largest customer as of Thursday, it added.
Source: AA
