Northrop Grumman announced Monday that it will be purchasing Orbital ATK for $9.2 billion.

The deal is expected to greatly improve Northrop’s space and missile defense technologies.

Northrop’s acquisition of Orbital ATK is for approximately $7.8 billion in cash, plus the assumption of $1.4 billion in net debt, according to a release.

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“The acquisition of Orbital ATK is an exciting strategic step as we continue to invest for profitable growth,” said Wes Bush, chairman, chief executive officer and president of Northrop Grumman. “Through our combination, customers will benefit from expanded capabilities, accelerated innovation and greater competition in critical global security domains.”

Northrop says it plans on establishing Orbital ATK as a new, fourth business sector upon completion of the acquisition. The idea is “to ensure a strong focus on operating performance and a smooth transition into Northrop Grumman.”

“The unique alignment in culture and mission offered by this transaction will allow us to maintain strong operational performance on existing programs while we pursue new opportunities that require the enhanced technical and financial resources of a larger organization,” saiid David Thompson, president and chief executive officer of Orbital ATK.

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