Posted September 19, 2017 11:00 am by Comments

By Christen Smith

Northrop Grumman announced Monday it will acquire fellow defense contractor Orbital ATK for $9.2 billion. (Photo: Orbital ATK/Facebook)
Northrop Grumman’s top executive described the global security company’s pending multi-billion dollar merger with Orbital ATK as “a good fit” Monday – a characterization later reflected in surging stock prices.
Northrop announced this week it will buy the fellow Virginia-based defense contractor for $9.2 billion, including $7.8 billion in cash and the assumption of a $1.4 billion debt. CEO and President Wes Bush said the two companies can work together to ensure the technological superiority of the U.S. and its allies “well into the future.”
“In any significant combination like this, the thing that we’ve been looking for has been the complementary nature of the technologies. And as we think about the world that’s shaping up in front of us … this issue of technological superiority for the U.S. and our allies is a real issue,” he told investors during a conference call Monday. “It’s something that our customers are struggling with. Clearly, as we watch what’s happening around our globe, the rather rapid advance of some of our potential adversaries is quite concerning.”
“There are a number of mission areas where the fit is exceptionally good,”

Source: Guns.com

Leave a Reply

Your email address will not be published.