CAPE CANAVERAL, Florida – Northrop Grumman Corporation announced today that it will acquire Orbital ATK for approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt. Both companies have operations in Brevard County on Florida’s Space Coast.
shareholders will receive all-cash consideration of $134.50 per share. The acquisition is expected to close in the first half of 2018 and is subject to customary closing conditions, including regulatory and Orbital ATK shareholder approval.
“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,” said Wes Bush, chairman, chief executive officer and president of Northrop Grumman.
Upon completion of the acquisition, Northrop Grumman
plans to establish Orbital ATK as a new, fourth business sector to ensure a strong focus on operating performance and a smooth transition into Northrop Grumman.
“Our employees will also benefit from greater development and career opportunities as members of a larger, more diverse aerospace and defense enterprise,” said David Thompson, president and chief executive officer of Orbital ATK.
ABOVE IMAGE: An Atlas V rocket carrying an Orbital ATK Cygnus spacecraft stands ready on Launch Complex-41 launchpad at Cape Canaveral Air Force Station in Florida. Credit: NASA