Northrop Grumman Deal For Orbital ATK On Track After Shareholder Vote

Orbital ATK’s [OA] stockholders on Wednesday voted in favor of their company’s being acquired by Northrop Grumman [NOC], keeping the pending deal on track for a close in the first half of 2018.

The nearly $8 billion acquisition still must receive regulatory approvals.

Orbital ATK said that holders of more than 99 percent of the company’s common stock voted in favor of the transaction.

An Orbital ATK Antares launch vehicle lifts off from Wallops Island, Va. Photo: Orbital ATK

An Orbital ATK Antares launch vehicle lifts off from Wallops Island, Va. The launch vehicle will be a new capability for Northrop Grumman. Photo: Orbital ATK

“The acquisition of Orbital ATK by Northrop Grumman creates substantial value for our stockholders and enhances our capability to accelerate product development and technology innovation in support of our customers’ critical missions,” David Thompson, president and CEO of Orbital ATK, said in a statement. “The transaction also enables our employees to benefit from new opportunities and career paths as part of a larger and more diverse aerospace and defense company.”

Northrop Grumman in September announced its intent to acquire Orbital ATK for $7.8 billion, a deal that will strengthen its capabilities in satellites, give it new capabilities in solid rockets and tactical propulsion, ammunition, weapons and precision munitions.

“Bringing together these two great companies will benefit our customers, shareholders and employees,” Wes Bush, chairman, president and CEO of Northrop Grumman, said in a statement on Wednesday. “The combination will provide increased competition, greater innovation and a broader set of capabilities, to help our customers solve their toughest challenges.”

Northrop Grumman expects to have around $25.5 billion in sales this year and Orbital ATK in August said its revenue outlook for 2017 is between $4.6 billion and $4.7 billion.

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