Northrop Grumman buying Orbital ATK for $7.8 billion

Northrop Grumman Corp. offices

Northrop Grumman is buying Orbital ATK for about $7.8 billion as activity in defense sector heats up amid rising global tensions. Earlier this month, United Technologies said it would pay $22.75 billion for defense contractor Rockwell Collins. Orbital ATK shareholders will receive $134.50 per share a 22 percent premium to the company's Friday closing price of $110.04. The deal's total value is approximately $9.2 billion, including debt. Shares of Orbital ATK surged more than 20 percent in Monday premarket trading. Northrop Grumman Corp. said that after the deal closes Orbital ATK Inc. will become a separate sector within its business operations. The boards of both companies have approved the deal and it's expected to close in the first half of next year. Northrop Grumman also operates a facility in Lebanon, Virginia.

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