Skip to content
AnalystLens

NORTHROP GRUMMAN CORP /DE/ 8-K Report, Corporate Update (Dec 8, 2020)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed December 8, 2020
Period End
December 7, 2020
Security
NOC
In the record · 2016–202610-K1110-Q328-K121

NOC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 121 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Oct ’17Oct ’17
  2. Material agreement8-K · Oct ’19Oct ’19
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed December 8, 2020. Cited figures are marked; the original filing is the authoritative source.

Northrop Grumman Corporation (NOC) announced a significant divestiture, agreeing to sell its federal IT and mission support services business to Peraton Inc. for approximately $3.4 billiona in cash.

This strategic move is aimed at streamlining the company's portfolio and unlocking shareholder value. The divested business is expected to generate $2.3 billionb in revenue in 2020, with substantial contributions from the Defense Systems sector. The sale proceeds are earmarked for strategic capital allocation, primarily to fund share repurchases, mitigate dilution stemming from the transaction, and reduce outstanding debt.

This transaction is a key step in Northrop Grumman's ongoing efforts to focus on its core aerospace and defense capabilities and enhance its financial flexibility. The deal is anticipated to close in the first half of 2021, pending regulatory approvals and other closing conditions.

02—Key points

Key Highlights

  1. Northrop Grumman agrees to sell its federal IT and mission support services business to Peraton Inc. for approximately $3.4 billion cash.
  2. The divested business is projected to generate $2.3 billion in revenue for 2020.
  3. Sale proceeds will be primarily used for share repurchases, dilution offset, and debt retirement.
  4. The transaction is expected to close in the first half of 2021.
  5. This divestiture aligns with Northrop Grumman's strategy to focus on core aerospace and defense operations.
  6. The deal is subject to customary closing conditions and regulatory approvals.

03—Questions

Frequently Asked Questions

  1. What is Northrop Grumman selling and for how much?

    Northrop Grumman is selling its federal IT and mission support services business to Peraton Inc. for approximately $3.4 billion in cash, subject to customary purchase price adjustments.

  2. What is the expected impact of this sale on Northrop Grumman's financials?

    The proceeds from the sale are intended to be used primarily for share repurchases, to offset dilution from the transaction, and for debt retirement, which should enhance financial flexibility and potentially increase shareholder value.

  3. When is this transaction expected to be completed?

    The transaction is expected to close in the first half of 2021, contingent upon receiving regulatory approvals and satisfying other customary closing conditions.

  4. How significant is the business being sold in terms of revenue?

    In 2020, the federal IT and mission support services business is expected to generate $2.3 billion in revenue, with $1.6 billion from Defense Systems, $0.5 billion from Mission Systems, and $0.2 billion from Space Systems.

04—Continue

← View all 8-K filings