Northrop Grumman has completed the acquisition of aerospace and defence technologies company Orbital ATK for $9.2bn.
Orbital ATK will now operate as a new fourth business sector under the name Northrop Grumman Innovation Systems. This will ensure a strong focus on operating performance and a smooth transition of Orbital ATK into Northrop Grumman.
Orbital ATK chief operating officer Blake Larson will function as the corporate vice-president and president of Northrop Grumman Innovation Systems.
Northrop Grumman chairman and chief executive officer Wes Bush said: “We welcome Orbital ATK’s talented employees. We are delighted to have them join the Northrop Grumman team, and we are very excited about the value creation our combination represents for our customers, shareholders, and employees.
“Together, through our leading technologies and innovation-focused culture, we look forward to developing enhanced mission capabilities and more competitive offerings in critical global security domains.”
In September last year, the two companies entered into a definitive agreement for the acquisition of Orbital ATK for approximately $7.8bn in cash, in addition to the assumption of $1.4bn in net debt.
Under the deal, Northrop Grumman is committed to paying $134.50 per share to the shareholders of Orbital ATK.
In February this year, the European Commission (EC) notified that it approved Northrop Grumman’s acquisition of Orbital ATK.
During the acquisition, Perella Weinberg Partners operated as the exclusive financial advisor to Northrop Grumman while Cravath, Swaine & Moore served as the legal counsel to the company.
Operating both as a prime contractor and merchant supplier, Orbital ATK designs, develops and provides space, defence, and aviation-related systems to customers across the globe.
The company’s product portfolio includes launch vehicles and related propulsion systems, missiles, subsystems and defence electronics, precision weapons, ammunition, satellites, and advanced aerospace structures.