Northrop Grumman buying Orbital ATK for $7.8 billion

By  | 
View Map

FALLS CHURCH, Va. (AP) -- Northrop Grumman is buying Orbital ATK for about $7.8 billion as activity in defense sector heats up amid rising global tensions.

Earlier this month, United Technologies said it would pay $22.75 billion for defense contractor Rockwell Collins.

Orbital ATK shareholders will receive $134.50 per share a 22 percent premium to the company's Friday closing price of $110.04. The deal's total value is approximately $9.2 billion, including debt.

Shares of Orbital ATK surged more than 20 percent in Monday premarket trading.

Northrop Grumman Corp. said that after the deal closes Orbital ATK Inc. will become a separate sector within its business operations.

The boards of both companies have approved the deal and it's expected to close in the first half of next year.



 
The comment sections of our web set are designed for thoughtful, intelligent conversation and debate. We want to hear from the viewers but we are not obligated to post comments we feel inappropriate or violate our guidelines. Here are some of the criteria you should follow when posting comments:

Comments cannot be profane or vulgar. Children and families visit this site. We will delete comments that use profanity or cross the lines of good taste.

We will delete all comments using hate speech. Slurs, stereotypes and violent talk aren’t welcome on our web site.

Comments should not attack other readers personally.

We will delete comments we deem offensive, in bad taste, or out of bounds. We are not obligated to post comments that are rude or insensitive.

We do not edit user-submitted comments.

As a host WEAU 13 News welcomes a wide spectrum of opinions. However, we have a responsibility to all our readers to try to keep our comment section fair and decent. For that reason WEAU 13 News reserves the right to not post or to remove any comment.
powered by Disqus