U.S. defense contractor Northrop Grumman said Monday it will buy missile and rocket maker Orbital ATK for about $7.8 billion in cash, with plans to establish a new, fourth business sector.
Orbital has billion-dollar contracts with NASA and the U.S. Army, as well as contracts with the U.S. Missile Defense agency.
The deal, expected to close in the first half of 2018, comes as the firing of missiles by North Korea in recent months has focused attention on missile defense systems. Orbital’s defense systems group includes its development of advanced missile defense interceptors.
