Lockheed Martin World Systems to be Acquired by Intelsat
Terms of the transaction were not disclosed but will not be material to Lockheed Martin. The acquisition is subject to regulatory approvals and customary closing conditions, and it is anticipated that the transaction will be completed by year's end.
Lockheed Martin World Systems and CDTI provide telecommunications services to international telecommunications services providers, long distance communications carriers, broadcasters and multinational corporations using the Intelsat satellite system. Through the transaction, Intelsat will acquire World Systems' satellite tracking, telemetry, command and monitoring facilities in Clarksburg, Maryland, and Paumalu, Hawaii, and the Clarksburg, Maryland digital teleport. Intelsat will also obtain all of World Systems' existing Intelsat capacity service contracts with its customers.
World Systems and CDTI originally were part of COMSAT Corporation, which Lockheed Martin acquired in 2000 through its Lockheed Martin Global Telecommunications (LMGT) business. When Lockheed Martin announced it was exiting the global telecommunications services business in December 2001, it determined it would offer for sale certain telecommunications assets, including World Systems and CDTI.
"This transaction is consistent with our intent to focus on core businesses and transition valuable assets that are not elements of our long-term strategy," said Vance Coffman, chairman and chief executive officer of Lockheed Martin. "Further, combining World Systems with Intelsat is the natural next step after Intelsat's privatization to improve customer service and satisfaction in delivering more end-to-end telecommunications solutions."
While Lockheed Martin and Intelsat pursue requisite regulatory approvals from the U.S. government, World Systems and CDTI will continue to operate as Lockheed Martin businesses. The businesses' primary operations are based in Maryland and Hawaii and employ some 120 personnel. The transaction does not impact Lockheed Martin's 24 percent ownership stake in Intelsat.
Lockheed Martin is a global enterprise principally engaged in the research, design, development, manufacture and integration of advanced technology systems, products and services. Headquartered in Bethesda, Maryland, the Corporation's core businesses are systems integration, space, aeronautics and technology services. Lockheed Martin had 2001 sales of $24 billion.
SAFE HARBOR STATEMENT: Some of the statements in this news release are forward-looking and relate to anticipated future operating results or events. Forward-looking statements are based on Lockheed Martin Corporation management's current expectations and assumptions, which may be affected by subsequent developments and business conditions, and necessarily involve risks and uncertainties. Therefore, there can be no assurance that actual future results will not differ materially from anticipated results. Completion of the sale of the World Systems and CDTI businesses is subject to government approvals, including filings with the Federal Communications Commission, the congressional Committee on Foreign Investment in the United States and applicable federal and foreign antitrust authorities, and other closing conditions. The purchase price for the sale is subject to adjustments based on net assets of the business through the closing date. In addition, readers should refer to Lockheed Martin's disclosure documents filed with the Securities & Exchange Commission for specific details on some of the factors that may affect operating results. Lockheed Martin expressly disclaims any obligation to update forward-looking statements.
CONTACT: Lockheed Martin, Bethesda
Charles Manor, 301/214-3115
charles.manor@lmco.com
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