US aerospace giant Lockheed Martin has agreed to buy the pre-launch satellite services unit of local space hardware developer Astrotech for US$61m.
The deal, which requires approval from Astrotech’s shareholders, comes as Lockheed looks to branch out…
US aerospace giant Lockheed Martin has agreed to buy the pre-launch satellite services unit of local space hardware developer Astrotech for US$61m.
The deal, which requires approval from Astrotech’s shareholders, comes as Lockheed looks to branch out from government launch contracts for a bigger slice of the commercial market.
“Astrotech Space Operations’ expertise in the final stages of launch preparation complements our existing capabilities in satellite design, production and integration,” said Marillyn Hewson, Lockheed’s chairman and CEO.
“This new capability expands our Space Systems services portfolio and enhances the value we offer to current and future Lockheed Martin and Astrotech customers.”
The Astrotech Space Operations business was set up in 1981 and has so far helped to integrate more than 300 US and international rockets for their launch missions.
By divesting the unit, which will become a wholly-owned subsidiary of Lockheed, Astrotech said it will be able to focus on, and put more resources into, high growth business opportunities such as its mass spectrometry products.
Lockheed launches through the United Launch Alliance (ULA) joint venture it shares with Boeing.
In March the group unveiled what it claims is the satellite launch industry’s first “refund or reflight” programme, as it seeks to gain more commercial consumers to deal with NASA and the US Air Force reaching their peak launch period in 2016.
The move followed news in September that Lockheed had secured a mission for Mexico’s government in a rare commercial launch contract for the company.
Despite a good track record for launches, its Atlas V rockets had previously not signed up a geostationary commercial customer for several years, mainly due to their high cost and ULA’s crowded manifest for government missions.
However, the group has recently created a new business plan with ULA that it hopes will improve operations, cut costs and lower launch prices.
Following shareholder approval, Lockheed and Astrotech expect to close their transaction in Q3 2014.
Lockheed declined to disclose financial details.
