Lockheed Martin
Corporation today announced that Intelsat, Ltd. will
acquire Lockheed Martin’s World Systems and COMSAT Digital Teleport,
Inc. (CDTI), businesses.
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.
