Sept. 18 (UPI) -- Northrop Grumman is to acquire Orbital ATK in a deal worth $9.2 billion, bringing together two of the primary defense contractors for the U.S. military.
Northrop Grumman will purchase Orbital ATK with $7.8 billion in cash and assume $1.4 billion of Orbital's debt, the company's announced on Monday. The deal is expected to officially close early next year.
"We look forward to welcoming Orbital ATK's talented employees to Northrop Grumman, and believe our combined strength will benefit our customers and shareholders," Wes Bush, chairman, chief executive officer and president of Northrop Grumman, said in a press release.
Northrop Grumman is one of the largest defense companies in the world, with expected 2017 sales of up to $30 billion. They provide a variety of aircraft, unmanned vehicles and other systems ranging from the B-2 stealth bomber to the RQ-4 Global Hawk surveillance drone for the United States and international customers.
Orbital ATK markets a variety of products and services for both the military and civilian sectors. They are one of the primary contractors for military satellite launches and are also responsible for manufacturing the majority of small arms ammunition for the U.S. military.