Here's Why Orbital ATK Stock Is Skyrocketing Today

Here's Why Orbital ATK Stock Is Skyrocketing Today

Shares of Orbital ATK (NYSE: OA) are soaring today, up 21% as of 11:41 a.m. EDT to around $132.73 per share, following the announcement that fellow defense contractor Northrop Grumman (NYSE: NOC) has agreed to acquire the company for $134.50 per share in cash.

Northrop Grumman has offered to acquire all the outstanding shares of Orbital ATK in an all-cash deal valuing the company at $7.8 billion, plus the assumption of $1.4 billion of net debt. The companies expect the transaction to close in the first half of next year, assuming regulatory and shareholder approval. Northrop Grumman has secured fully committed debt financing for the transaction and expects to put permanent funding in place before closing. 

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Source: Fool.com