Orbital Sciences Corporation (NYSE: ORB) has reached a definitive agreement to acquire the spacecraft development and manufacturing business of General Dynamics Corporation's (NYSE: GD) subsidiary, GD Advanced Information Systems. The transaction is subject to customary closing conditions and is expected to close in approximately four weeks — Houlihan Lokey advised Orbital in conjunction with this transaction.

The acquisition will enhance Orbital's already-established position in the growing market for national security space systems, including spacecraft used in intelligence and surveillance, missile tracking, space situational awareness and other operational defense missions. The combination will also substantially strengthen the company's capabilities to design and manufacture Earth science, weather and climate monitoring, and space-based astronomy satellite systems. By adding advanced medium-class spacecraft platforms to Orbital's existing small-satellite product line, it is expected to significantly expand the company's opportunities to serve customers in the U.S. Department of Defense, intelligence community and civil government agencies such as NASA and NOAA.