Northrop Grumman Corporation has announced its plan to acquire Orbital ATK, Inc., a global leader in aerospace and defense technologies, for approximately $7.8 billion plus the assumption of $1.4 billion in net debt. The boards of both companies have approved the agreement and the transaction is expected to close in the first half of 2018.

“The acquisition of Orbital ATK is an exciting strategic step as we continue to invest for profitable growth,” says Wes Bush, chairman, CEO and president of Northrop Grumman. “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.”

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.

“We are very pleased to announce this agreement with Northrop Grumman,” says David Thompson, president and CEO of Orbital ATK. “The unique alignment in culture and mission offered by this transaction will allow us to maintain strong operational performance on existing programs while we pursue new opportunities that require the enhanced technical and financial resources of a larger organization. Our employees will also benefit from greater development and career opportunities as members of a larger, more diverse aerospace and defense enterprise.”