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US: Northrop completes US$9b Orbital ATK acquisition

 |  June 6, 2018

 

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    Falls Church-based Northrop Grumman received final regulatory approval Tuesday, June 5, for its acquisition of rocket maker Orbital ATK, creating a huge Northern Virginia contracting company with 80,000 employees worldwide.

    The Federal Trade Commission signed off on the US$9.2 billion deal, which includes US$7.8 billion in cash and the assumption of US$1.4 billion in Orbital ATK debt. Northrop expecteds the acquisition to close after the stock markets close on Wednesday.

    As a result, Northrop has raised its financial guidance for 2018 and now expects full-year revenue of about US$30 billion, about US$3 billion more than its most recent financial guidance in April.

    Orbital ATK is now known as Northrop Grumman Innovation Systems, a new, fourth business sector for the company.

    Orbital ATK itself is the result of the 2015 merger or Orbital Sciences Corp. and the aerospace and defense groups of Alliant Techsystems.
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