Northrop Grumman (NOC) has announced that it will acquire Orbital ATK (OA), which is the second major takeover in the aerospace industry in the last couple of days. This could result in more M&A action in the industry going forward, as peers may feel the pressure to make a move as well.
The deal
Northrop Grumman will pay $135 per share of Orbital ATK, which means that the company is valued at $7.8 billion, on top of that Northrop Grumman will assume $1.4 billion of Orbital ATK's debt. The deal will be paid in cash completely and is due to close in Q2 2018, according to Northrop Grumman's management.
