Northrop Grumman Corp. (NYSE:NOC) said on Monday that it has agreed to buy its fellow defense contractor Orbital ATK Inc. (NYSE:OA) for US$7.8bn in cash.
The purchase price, at US$134.50 per Orbital share is around a 22% premium to its closing price on Friday.
The total purchase price tag will be around US$9.2bn when the US$1.4bn in assumed debt is included, the companies said in a statement.
Second large merger in aerospace industry
The acquisition will see Northrop Grumman adding to its existing focus on military aircraft and space systems.
It will also expand its franchise to include more fast-growing missile-defense business.
This is the second large merger in the aerospace industry.
Earlier in September, United Technologies Corp.(NYSE:UTX) announced the acquisition of Rockwell Collins Inc. (NYSE:COL) for around US$23bn.