The Terran Orbital Corp (NYSE: LLAP) stock price soared 80% after its wholly-owned subsidiary, Tyvak Nano-Satellite Systems, Inc., won a $2.4 billion contract from Rivada Space Networks to design, build, and deploy 288 low-earth orbit satellites. The company will also deliver 12 “spare” satellites bringing the total number to 300.
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Investors cheered the news given the multi-billion dollar amounts involved. Rivada space Networks is a subsidiary of Rivada Networks, Inc., a U.S.-based wireless technology firm specialising in the convergence of terrestrial and satellite communications. The firm also operates open-access wholesale satellite networks.
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Rivada Networks operates in North and South America and Europe, holding numerous patents on digital spectrum arbitrage, spectrum sharing, open access services, prioritized messaging, and other wireless communications technologies.
On the other hand, Terran Orbital is an innovative mass producer of small satellites for global operators and leading industry players. The company is a preferred supplier for customers across the Middle East, the United States, Australia and Europe.
Terran Orbital’s subsidiary Tyvak will be the lead contractor in designing and manufacturing the 30 satellites, expected to weigh at least 500 kilograms each. The firm will also integrate the communication payload before performing the final assembly, integration and testing.
The firm will also develop some parts of the ground segment, executing mission operations from a state-of-the-art satellite operations control center. Rivada will start deploying the satellites built by Terran Orbital as early as 2025 so long as it gets the relevant regulatory clearances. The firm plans to launch at least four of its satellites that year.
Marc Bell, Terran Orbital’s Co-Founder, Chairman, and CEO, said: “Terran Orbital is thrilled to form this new partnership with Rivada Space Networks. Our partnership will show why Terran Orbital continues to be a satellite manufacturer of choice for aerospace and defense companies worldwide. We are ecstatic to work alongside Rivada and look forward to building out their LEO constellation.”
Over 14.83 million Terran Orbital shares had changed hands at writing.
*This is not investment advice.
Terran Orbital (LLAP) stock price.
The Terran Orbital (LLAP) stock price soared 80% to trade at $3.08, from Tuesday’s closing price of $1.71.
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