Lockheed Martin Withdraws its Bid to Acquire Terran Orbital

Terran Orbital facility in Irvine, California. Photo: Terran Orbital

Lockheed Martin has pulled back on its offer to acquire Terran Orbital, the company disclosed in filings to the Securities and Exchange Commission on May 2. According to the filing, Lockheed Martin withdrew its offer to acquire Terran Orbital for $1 per share on April 30. Lockheed made the bid in early March. 

In response to the bid, Terran Orbital adopted a limited duration stockholder rights plan in March in response to Lockheed’s offer – a move that is also known as a “poison pill.” The rights plan would come into play if a person or group acquires 15% or more of the company’s stock in a transaction “not approved by the board.” 

Terran Orbital confirmed in a May 2 press release that the company is continuing an “ongoing strategic review to maximize shareholder value. The review allows us to explore all options.”

“We value Lockheed Martin’s partnership and look forward to continued collaboration under our Strategic Cooperation Agreement which runs through 2035. We remain committed to exceeding customer expectations and delivering cutting-edge satellite solutions,” the company statement said. 

Terran Orbital has faced criticism that the company’s backlog is too concentrated with customers Lockheed Martin and Rivada Space Networks. A substantial portion of Terran Orbital’s backlog is due to the Rivada contract — $2.4 billion of the $2.7 billion backlog, and Terran Orbital had to slash 2023 revenue projections as Rivada delayed payments.