Lockheed Martin, Comsat Combination Completed

Lockheed Martin and Comsat have completed the strategic combination following final approval from the Federal Communications Commission (FCC).

The transaction was accomplished via a one-for-one tax-free exchange of Lockheed Martin common stock for Comsat common stock for the remaining 51 percent of Comsat stock Lockheed Martin did not own. The value of the exchange of common stock is approximately $790 million. Comsat will become an integral element of Lockheed Martin Global Telecommunications, a wholly owned subsidiary of the Corporation comprising Lockheed Martin's telecommunications services business.

The resultant new business, with projected revenues approaching $1 billion, plans to offer services in the U.S. as Lockheed Martin Global Telecommunications (LMGT), while offshore Comsat International operations will retain their current designations.