Northrop Grumman Corp. says it will buy Orbital ATK for around $7.8 billion in cash, plus the assumption of $1.4 billion in net debt.

Orbital ATK shareholders will receive an all-cash consideration of $134.50 per share. The agreement has been approved unanimously by the Boards of Directors of both companies. The transaction is expected to close in the first half of 2018 and is subject to customary closing conditions, including regulatory and Orbital ATK shareholder approval.

Orbital ATK is a global leader in aerospace and defense technologies. The company designs, builds and delivers space, defense and aviation systems for customers around the world, both as a prime contractor and merchant supplier. Its main products include launch vehicles and related propulsion systems; missile products, subsystems and defense electronics; precision weapons, armament systems and ammunition; satellites and associated space components and services; and advanced aerospace structures.

Upon completion of the acquisition, Northrop Grumman plans to establish Orbital ATK as a fourth business sector. Northrop Grumman expects the transaction to be accretive to earnings per share and free cash flow per share in the first full year after the transaction closes, and to generate estimated annual pre-tax cost savings of $150 million by 2020.

Northrop Grumman provides systems, products and solutions in autonomous systems, cyber, C4ISR, strike and logistics and modernization to customers worldwide.