Here’s an interesting report from Reuters:
Northrop Grumman Corp (NOC.N) neared an agreement to buy Orbital ATK Inc (OA.N) in a transaction that could be announced as soon as Monday, according to a person familiar with the transaction.
The source requested anonymity because the deal has not been disclosed publicly.
Northrop Grumman declined to comment and Orbital did not immediately respond to a request for comment. The Wall Street Journal reported the deal earlier on Sunday.
Northrop is valued at $46.5 billion, while Orbital is valued at $6.3 billion. The acquisition price could not be immediately determined, but could exceed $7.5 billion if a typical premium was attached to it, Wall Street Journal said.
Editor’s Note: If Northrop buys Orbital ATK, it will inherit the Pegasus XL booster and the L-1011 Stargazer aircraft that is used to launch it. Northrop is also is involved through Scaled Composites in the Stratolaunch program, which will also use Pegasus XL boosters.
The cost of maintaining one aging jetliner built in 1974 has got to be fairly high. Then you’ve got Stratolaunch which is a massive, one-of-a-kind aircraft. So, would you want to maintain both of them to launch the same booster?