(Reuters) – Lockheed Martin on Thursday agreed to acquire satellite products maker Terran Orbital in a $450 million deal, months after the defense contractor withdrew it previous bid to take it private.

Lockheed will pay 25 cents per share in cash, representing a 37.5% discount to Terran’s last close. The company in March had offered $1 per Terran share.

Terran’s shares plunged nearly 41% to 24 cents on the New York Stock Exchange.

Lockheed, which had invested in Terran’s Series A round in 2017, is its largest customer and currently uses the company’s satellite bus for the U.S. Space Development Agency’s (SDA) transport and tracking layer programs.

“The acquisition consolidates a supplier, with Terran Orbital providing buses for Lockheed’s prime position on the SDA’s Tracking and Transport layer,” analysts said in a Jefferies note.

Florida-based Terran Orbital is engaged in satellite design, production, launch planning, mission operations, and on-orbit support for aerospace and defense clients.

The transaction, which is expected to close in the fourth quarter, will retire Terran’s existing debt and establish a new $30 million working capital facility.

A month back, Terran posted quarterly net loss of $35.4 million, adding to several quarters of losses since going public in 2022.

Earlier this year, Lockheed was awarded $890 million as part of a $2.55 billion contract along with peers L3Harris Technologies and Sierra Space to deliver 18 satellites to the SDA as part of its missile tracking program.

(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Maju Samuel)