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.
“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.
Orbital ATK is the Pentagon’s prime contractor for maintaining the solid- and liquid-fueled rocket motors on the Minuteman 3 ICBM under a contract worth nearly $800 million when it was awarded in 2015. The company also provides solid rocket motors for the Navy’s Trident 2 submarine-launched nuclear missiles under a subcontract to Lockheed Martin.
For the Energy Department’s National Nuclear Security Administration (NNSA), Orbital ATK is part of Consolidated Nuclear Security: the management team for the Y-12 National Security Complex near Oak Ridge, Tenn.
