Northrop Grumman to buy missile maker Orbital for US$7.8bil

The Orbital ATK Antares rocket is rolled from the Horizontal Integration Facility (HIF) to launch Pad-0A at NASA's Wallops Flight Facility in Virginia, U.S., October 13, 2016. - Reuters filepic

BENGALURU: US defence contractor Northrop Grumman Corp said it would buy missile and rocket maker Orbital ATK Inc for US$7.8bil in cash, giving it access to lucrative contracts with NASA and the US Army.

The deal, which comes as North Korea tests threatening missiles, will also help Northrop increase its arsenal of missile defense systems and is a rare departure for the company, which has not made a large acquisition in several years. It last bought TRW Inc in 2002 for US$7.8bil.