Satellite manufacturer Terran Orbital is currently exploring its options following an acquisition offer from defense giant Lockheed Martin. The proposal submitted by Lockheed values Terran Orbital at nearly $600 million, which is about a third of its equity valuation from when the company went public two years ago. CEO Marc Bell stated that Terran Orbital is considering all possibilities and has hired Jefferies to lead a strategic review of its future path.
The news of Lockheed’s takeover bid came as a surprise to Terran Orbital, with Bell mentioning that they found out about it at the same time as the rest of the world. However, he did mention that Lockheed has been a partner for many years, indicating that there is already an existing relationship between the two companies. Bell also expressed his satisfaction with the validation that Lockheed’s offer brought to Terran Orbital.
While Bell did not provide specific details about the options being considered, he mentioned that they range from new investors to a potential sale of the company. Terran Orbital has been in discussions with various parties and is running a thorough process to ensure maximum value for its shareholders. The CEO emphasized that there is no set deadline for the decision-making process, indicating that Terran Orbital is taking its time to evaluate all possibilities.
The recent shareholder lawsuit filed against Terran Orbital in response to the adoption of a “poison pill” stock rights plan after Lockheed’s offer was declined by the company. As of now, Terran Orbital has chosen not to comment on the lawsuit.
Overall, Terran Orbital’s exploration of options following Lockheed Martin’s acquisition offer showcases the company’s commitment to maximizing value for its shareholders. With Jefferies leading the strategic review, it is clear that Terran Orbital is taking a thorough approach to consider all possibilities, whether it be new investors or a potential sale of the company. The existing partnership with Lockheed Martin adds an interesting dynamic to the situation, highlighting the potential for a deeper collaboration between the two companies. As the process continues, it will be interesting to see how Terran Orbital’s future unfolds and what decision will ultimately be made.
