Northrop agrees to acquire Orbital ATK in $9.2bn deal
Northrop Grumman has agreed to acquire aerospace and defence technologies company Orbital ATK in a deal valued at approximately $9.2bn.
Under the terms of the agreement, Northrop will pay $134.50 per share to Orbital ATK.
Northrop Grumman chairman, chief executive officer and president Wes Bush said: “The acquisition of Orbital ATK is an exciting strategic step as we continue to invest for profitable growth. Through our combination, customers will benefit from expanded capabilities, accelerated innovation and greater competition in critical global security domains.
“Our complementary portfolios and technology-focused cultures will yield significant value creation through revenue synergies associated with new opportunities, cost savings, operational synergies, and enhanced growth. We look forward to welcoming Orbital ATK’s talented employees to Northrop Grumman, and believe our combined strength will benefit our customers and shareholders.”
Orbital ATK designs space, defence and aviation systems for customers worldwide, both as a prime contractor and merchant supplier.
Its product portfolio includes launch vehicles and related propulsion systems, missiles, subsystems and defence electronics, precision weapons, ammunition, satellites and advanced aerospace structures.
Subject to regulatory and Orbital ATK shareholder approval, the acquisition is expected to be completed in the first half of 2018.
Upon completion of the acquisition, Northrop said it will establish Orbital ATK as a new, fourth business sector to ensure a strong focus on operating performance and a smooth transition.