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Lockheed Martin Corporation

Aerospace & DefenseFounded 1995
Reviewed by Swet Parvadiya
Company data updated: October 2026

Acquisitions

Lockheed Martin Acquisitions

4

Major Deals Covered

$18.4B

Disclosed Deal Value

What are Lockheed Martin's biggest acquisitions?

Lockheed Martin's largest disclosed acquisition here is Sikorsky Aircraft for $9B in 2015. This page covers 4 major deals from 2015 to 2024, each with its price where disclosed and the reason behind it.

Major deals covered
4
Largest deal
Sikorsky Aircraft ($9B)
First deal
2015
Most recent
2024
CompanyYearPricePurpose
Sikorsky Aircraft2015$9.0BLockheed Martin acquired Sikorsky Aircraft from United Technologies Corporation in November 2015 for approximately $9 billion to add a market-leading rotary wing capability to its portfolio, filling a gap that had limited the company's participation in Army aviation programs. Sikorsky's position as the sole producer of the UH-60 Black Hawk and the prime contractor for the CH-53K King Stallion heavy-lift helicopter provided immediate revenue and a multi-decade sustainment franchise. The acquisition also brought Sikorsky's S-92 commercial offshore transport helicopter, providing a foothold in the civilian helicopter market that offered some diversification from pure defense revenues.
Aerojet Rocketdyne (terminated)2022$4.4BLockheed Martin announced in December 2020 a $4.4 billion agreement to acquire Aerojet Rocketdyne, the primary U.S. Manufacturer of solid rocket motors and liquid propulsion systems used in virtually all of Lockheed Martin's missile and space programs. The strategic rationale was straightforward: Aerojet Rocketdyne supplied propulsion systems to both Lockheed Martin and its competitors, and ownership would provide supply chain security, reduce propulsion costs, and capture the margins currently flowing to an independent supplier. The acquisition also reflected concerns about the health and capacity of the U.S. Solid rocket motor industrial base, which supplies propellant for weapons systems ranging from Minuteman ICBMs to Javelin missiles.
Terran Orbital2024$450.0MLockheed Martin completed the acquisition of Terran Orbital Corporation in 2024 for approximately $450 million, adding a small satellite manufacturing capability that addresses growing DoD and intelligence community demand for proliferated low-Earth orbit satellite architectures. The Space Force and NRO have been shifting from a small number of large, expensive satellites toward large constellations of smaller, cheaper satellites that are more resilient to adversary anti-satellite attacks a trend that required Lockheed Martin to develop high-volume satellite manufacturing capability that its existing Space segment lacked. Terran Orbital, based in Irvine, California, had developed streamlined manufacturing processes capable of producing small satellites at significantly higher rates than traditional defense satellite manufacturing approaches.
Leidos (IS&GS Segment Transfer)2016$4.6BIn a complex reverse merger transaction in 2016, Lockheed Martin transferred its Information Systems and Global Solutions business which provided IT services, healthcare IT, and intelligence analysis to government customers to Leidos Holdings (formerly SAIC) in a deal valued at approximately $4.6 billion. Rather than a conventional acquisition this was a Reverse Morris Trust transaction in which Lockheed Martin shareholders received Leidos stock and the combined entity operated under the Leidos name. The transaction allowed Lockheed Martin to exit a business that management viewed as lower-margin and peripheral to the company's core focus on advanced defense systems and technologies.
What companies has Lockheed Martin bought?
Major acquisitions by Lockheed Martin documented here include Sikorsky Aircraft (2015), Leidos (IS&GS Segment Transfer) (2016), Aerojet Rocketdyne (terminated) (2022) and Terran Orbital (2024).
What is Lockheed Martin's most recent acquisition?
The most recent Lockheed Martin acquisition documented here is Terran Orbital, in 2024, for $450M.

Terran Orbital

2024

$450M

Why

Lockheed Martin completed the acquisition of Terran Orbital Corporation in 2024 for approximately $450 million, adding a small satellite manufacturing capability that addresses growing DoD and intelligence community demand for proliferated low-Earth orbit satellite architectures. The Space Force and NRO have been shifting from a small number of large, expensive satellites toward large constellations of smaller, cheaper satellites that are more resilient to adversary anti-satellite attacks a trend that required Lockheed Martin to develop high-volume satellite manufacturing capability that its existing Space segment lacked. Terran Orbital, based in Irvine, California, had developed streamlined manufacturing processes capable of producing small satellites at significantly higher rates than traditional defense satellite manufacturing approaches.

Impact

The Terran Orbital acquisition positioned Lockheed Martin to compete for proliferated low-Earth orbit satellite contracts that represent one of the fastest-growing segments of the military space market. The Space Development Agency's Transport Layer and Tracking Layer satellite constellations, which will ultimately consist of hundreds of satellites providing missile warning and data relay services, represent a substantial potential revenue opportunity for high-volume small satellite manufacturers. The acquisition also provided Lockheed Martin with commercial satellite manufacturing relationships that offer some diversification from pure government programs.

Outcome

Terran Orbital has been integrated into Lockheed Martin's Space segment and is being positioned to bid on SDA constellation contracts and other high-volume government satellite programs. The acquisition scale at approximately $450 million reflects Lockheed Martin's preference under CEO Taiclet for technology-capability bolt-ons rather than large, transformative mergers that create integration risk and regulatory complexity.

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Aerojet Rocketdyne (terminated)

2022

$4.4B

Why

Lockheed Martin announced in December 2020 a $4.4 billion agreement to acquire Aerojet Rocketdyne, the primary U.S. Manufacturer of solid rocket motors and liquid propulsion systems used in virtually all of Lockheed Martin's missile and space programs. The strategic rationale was straightforward: Aerojet Rocketdyne supplied propulsion systems to both Lockheed Martin and its competitors, and ownership would provide supply chain security, reduce propulsion costs, and capture the margins currently flowing to an independent supplier. The acquisition also reflected concerns about the health and capacity of the U.S. Solid rocket motor industrial base, which supplies propellant for weapons systems ranging from Minuteman ICBMs to Javelin missiles.

Impact

The Federal Trade Commission filed suit to block the acquisition in January 2022, arguing that Lockheed Martin's control of Aerojet Rocketdyne would allow it to disadvantage competitors by restricting access to propulsion systems, effectively foreclosing competition in multiple missile and launch vehicle markets. The FTC's theory of harm resonated with competitors and defense industry observers who had expressed concern about vertical integration eliminating competitive incentives in critical supply chain segments. The case highlighted the regulatory tension between defense industry consolidation which the Pentagon generally supports on efficiency grounds and antitrust enforcement that prioritizes competition.

Outcome

Lockheed Martin terminated the acquisition agreement in February 2022 after concluding that the FTC's opposition made completion untenable. The company absorbed a $70 million termination fee under the merger agreement. Aerojet Rocketdyne subsequently became a standalone company that was itself acquired by L3Harris Technologies in 2023. The failed acquisition highlighted the limits of consolidation in the already-concentrated defense industrial base and prompted Lockheed Martin to pursue alternative supply chain strategies including multi-year propulsion supply agreements.

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Leidos (IS&GS Segment Transfer)

2016

$4.6B

Why

In a complex reverse merger transaction in 2016, Lockheed Martin transferred its Information Systems and Global Solutions business which provided IT services, healthcare IT, and intelligence analysis to government customers to Leidos Holdings (formerly SAIC) in a deal valued at approximately $4.6 billion. Rather than a conventional acquisition this was a Reverse Morris Trust transaction in which Lockheed Martin shareholders received Leidos stock and the combined entity operated under the Leidos name. The transaction allowed Lockheed Martin to exit a business that management viewed as lower-margin and peripheral to the company's core focus on advanced defense systems and technologies.

Impact

The IS&GS divestiture reduced Lockheed Martin's revenues by approximately $5 billion annually but improved the company's overall operating margin profile by removing a lower-margin government IT services business. The transaction also simplified Lockheed Martin's organizational structure, allowing management to focus investment and leadership attention on the higher-margin, higher-growth defense systems programs that represent the company's core competitive strengths. Leidos became one of the largest IT services companies serving the federal government following the combination.

Outcome

The divestiture is broadly viewed as a sound decision that improved Lockheed Martin's portfolio quality even at the cost of near-term revenue scale. The government IT services market that Lockheed Martin exited has continued to grow, but margins have remained competitive, and the company's focus on advanced systems programs has generated higher returns on invested capital. Leidos has grown substantially following the transaction and is now a major independent federal IT contractor.

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Sikorsky Aircraft

2015

$9.0B

Why

Lockheed Martin acquired Sikorsky Aircraft from United Technologies Corporation in November 2015 for approximately $9 billion to add a market-leading rotary wing capability to its portfolio, filling a gap that had limited the company's participation in Army aviation programs. Sikorsky's position as the sole producer of the UH-60 Black Hawk and the prime contractor for the CH-53K King Stallion heavy-lift helicopter provided immediate revenue and a multi-decade sustainment franchise. The acquisition also brought Sikorsky's S-92 commercial offshore transport helicopter, providing a foothold in the civilian helicopter market that offered some diversification from pure defense revenues.

Impact

The Sikorsky acquisition transformed Lockheed Martin's Rotary and Mission Systems segment into one of the company's largest revenue contributors, adding approximately $6 billion in annual revenues at the time of acquisition and creating opportunities for integration with Lockheed Martin's existing naval systems and mission systems capabilities. The combination allowed Lockheed Martin to compete for the Future Vertical Lift program the Army's competition to replace the Black Hawk and Apache helicopter fleets with a credible industrial base. The acquisition also significantly expanded the company's international helicopter customer relationships across more than 30 nations.

Outcome

Sikorsky has been fully integrated into the Rotary and Mission Systems segment and has contributed to segment revenue growth through the CH-53K production ramp and ongoing Black Hawk deliveries. The Future Vertical Lift competition, in which the Sikorsky-Boeing SB>1 Defiant competed against the Bell V-280 Valor, concluded with the Bell design winning the FLRAA contract in 2022 a significant setback but the existing Black Hawk and CH-53K production programs continue to generate substantial revenues through the 2030s.

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Lockheed Martin Corporation's Growth & Acquisition Strategy

Lockheed's growth plan centers on expanding munitions capacity, with multi-year agreements to raise PAC-3 MSE and THAAD output, plus GMLRS, PrSM and Javelin production. It is also positioning for missile-defense and space-based sensing work under Golden Dome, pursuing hypersonic programs, integrating Terran Orbital (acquired in 2024) to build smaller satellites, and applying AI, digital engineering and open-architecture software under CEO James Taiclet's '21st Century Security' strategy. International sales of the F-35 and air-defense systems to allies remain a second growth lever.

How Lockheed Martin Corporation Makes Money

Lockheed Martin sells to governments rather than consumers. In 2024, about 73% of net sales came from the U.S. government (including foreign military sales routed through it) and about 26% from international customers. Revenue is earned under long-running cost-reimbursable and fixed-price contracts across four segments: Aeronautics (F-35, F-16, C-130J and classified Skunk Works work), Missiles and Fire Control (PAC-3, THAAD, GMLRS, HIMARS, Javelin and PrSM), Rotary and Mission Systems (Sikorsky Black Hawk and CH-53K, Aegis, radars and C2 systems), and Space (GPS III, missile-warning satellites, Orion, Trident II D5 and hypersonic programs). Production contracts are followed by decades of sustainment, upgrades and spare parts, which gives the company multi-year revenue visibility through its backlog.

Lockheed Martin Acquisitions FAQ

What was the historic $10 billion merger between Lockheed Corporation and Martin Marietta in 1995?

In March 1995, Lockheed Corporation and Martin Marietta completed a $10 billion 'merger of equals' to create Lockheed Martin Corporation, creating the world's largest defense and aerospace contractor with 165,000 employees.

What was Lockheed Martin's $9.0 billion acquisition of Sikorsky Aircraft in 2015?

In November 2015, Lockheed Martin acquired well-known military helicopter manufacturer Sikorsky Aircraft from United Technologies Corporation (UTC) for $9.0 billion ($7.1 billion net of tax benefits), adding Black Hawk, Seahawk, and King Stallion helicopters to its portfolio.

Why did the US Federal Trade Commission (FTC) block Lockheed's acquisition of Aerojet Rocketdyne in 2022?

In February 2022, Lockheed Martin terminated its proposed $4.4 billion acquisition of rocket propulsion maker Aerojet Rocketdyne after the FTC filed a lawsuit to block the deal over antitrust concerns regarding competition in missile solid rocket motors.

What was the $450 million acquisition of satellite manufacturer Terran Orbital in 2024?

In August 2024, Lockheed Martin agreed to acquire small-satellite manufacturer and defense contractor Terran Orbital Corporation for approximately $450 million, securing in-house satellite bus manufacturing for US Space Force missile-tracking constellations.

What was the landmark $4.6 billion Reverse Morris Trust divestiture of IS&GS to Leidos in 2016?

In August 2016, Lockheed Martin divested its lower-margin Information Systems & Global Solutions (IS&GS) government IT business to Leidos Holdings in a $4.6 billion tax-free transaction, focusing Lockheed 100% on high-margin core defense hardware and aerospace.

What was the acquisition of General Dynamics' military aircraft division in 1993?

In March 1993, Lockheed Corporation acquired the Fort Worth, Texas military aircraft manufacturing division of General Dynamics for $1.5 billion, acquiring the blockbuster F-16 Fighting Falcon program and the Fort Worth plant where the F-35 is manufactured today.

What was the acquisition of Loral Corporation's defense electronics business in 1996?

In April 1996, newly merged Lockheed Martin acquired Loral Corporation's defense electronics and systems integration business for $9.1 billion, cementing Lockheed's leadership in naval radar, missile guidance, and electronic warfare systems.

How does Lockheed Martin evaluate future corporate M&A?

Lockheed Martin focuses its M&A strategy on niche technology tuck-ins (small-satellites, optical communications, AI autonomy software) while avoiding large anti-competitive prime defense mergers that face heavy regulatory resistance.

What companies has Lockheed Martin acquired?

To maintain absolute dominance, they execute massive, highly targeted defense acquisitions. In 2015, they executed a massive $9 billion buyout of Sikorsky Aircraft (the legendary manufacturer of the Black Hawk helicopter), completely dominating military rotorcraft. In 2022, they aggressively attempted to buy rocket-engine maker Aerojet Rocketdyne for $4.4 billion, but the deal was fiercely blocked by the FTC due to massive monopoly concerns.

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Content is for informational purposes only. Not financial advice. Data sourced from SEC filings, annual reports, and public records. See our full disclaimer and methodology.