US defense agreement: Northrop Grumman buys Orbital 

   

US defense agreement: Northrop Grumman buys Orbital 

US defense contractor giant Northrop Grumman bought rival Orbital Atk for $ 7,8 billion in cash. It was read in a note which underlined that the value of the passage rises to 9,2 billion dollars, including the debt of 1,4 billion. Northrop will pay $ 134,50 per share, about 22% more than Orbital's close on Friday, when it ended the week at $ 110,04. The purchase will be completed in the first half of 2018 and has already been approved by both boards of directors. "The acquisition of Orbital Atk is an exciting strategic step at a time when we continue to invest in growth," said Wes Bush, chief executive officer of Northrop Grumman. Orbital, born in 2015 from the union of Alliant Techsystems and Orbital Sciences, produces rocket motors and components for offensive and defensive missile systems, but also for military and commercial satellites. For this reason, it will strengthen Northrop's missile defense asset. Recently there was another maxi merger: the one between United Technologies and Rockwell Collins worth 23 billion dollars.