News from AFA's Air, Space & Cyber | Analysts see red flags in Northrop’s acquisition of Orbital ATK

View this email in your browser SpaceNews' show daily for AFA's Air, Space & Cyber Conference, Sept. 18-20 September 18, 2017 SPACENEWS' DAILY COVERAGE BROUGHT TO YOU BY Analysts see red flags in Northrop's acquisition of Orbital Sandra Erwin — News of the $9.2 billion acquisition by Northrop Grumman of Orbital ATK has been met with mixed reactions on what it could mean for the Pentagon's space business. In a conference call on Monday executives from both firms described the combination of both companies as a "complementary fit." Industry analysts see the merger as a natural consequence of constrained government spending and pressure on corporations to reduce costs. But they also are raising potential red flags such as the possibility that a larger, more vertically integrated company would leave the military with fewer choices in certain sectors of the market.  SEE FULL STORY Secretary Wilson: Air Force to step up advocacy of space Sandra Erwin — As Congress prepares to debate the creation of a new military branch devoted to space, Air Force leaders insist that they are taking significant steps to boost space programs and operations. "I will continue to advocate for space for all the services, and in particular for the Air Force," Secretary of the Air Force Heather Wilson said Sept. 18 at the Air Force Association's Air Space Cyber conference in National Harbor, Maryland. Without mentioning congressional efforts to segregate a portion of the Air Force under a separate "space corps," Wilson was insistent that the service has been and will continue to be a champion for space. Both Wilson and Chief of Staff Gen. David Goldfein have pushed back on the idea of breaking off space forces into a separate service. "The Air Force has been the lead service for space since 1954," Wilson said. Most recently, the secretary of the Air Force also was designated principal adviser to the secretary of defense on space matters. SEE FULL STORY USAF to scrutinize science and technology strategy Michael Fabey — The U.S. Air Force will put its science-and-technology priorities and strategy under a yearlong microscope to see how they can be improved and updated, service Secretary Heather Wilson said Sept. 18. "We need to update our research priorities, but validation of research areas isn't enough," Wilson said during her keynote speech at the annual Air Force Association Air Space Cyber Conference. "We need to rethink the way in which we manage our path-breaking research so that we can effectively partner with others to retain American dominance in air and space power," Wilson said. SEE FULL STORY Wargaming tool sharpens space domain focus Michael Fabey — As the U.S. Air Force looks to hone its recently issued warfighting operational concepts for space, Lockheed Martin has developed a digital battle manager that promises to integrate the domain into overall planning to a much greater degree than before. Called the Multi-Domain Command and Control system, the manager can link various air, ground, sea and space systems for real-time analysis and action, Lockheed Martin officials say. The system can be used as an operational battle manager. The Air Force is now using it for wargaming and other simulated scenarios, Renee Pasman, mission systems roadmaps director for Lockheed Martin Skunk Works, said Sept. 18 during a demonstration of the system at the Air Force Association's annual Air Space Cyber Conference in National Harbor, Maryland. SEE FULL STORY Northrop Grumman to acquire Orbital ATK Jeff Foust  — Northrop Grumman will acquire Orbital ATK in a $9.2 billion deal announced Sept. 18 that will give the combined company complementary capabilities in space and defense systems. Under the terms of the deal, Northrop Grumman will pay $7.8 billion in cash and assume $1.4 billion in debt to acquire Orbital ATK. Northrop Grumman is paying $134.50 per share of Orbital ATK stock, a premium of more than 20 percent over the stock's price of $110 per share at the close of trading Sept. 15. News of the deal was first reported Sept. 17 by the Wall Street Journal. The companies, in a statement announcing the deal and subsequent conference call with financial analysts, described Northrop's acquisition of Orbital as a complementary one. Orbital ATK will operate as a fourth division of Northrop Grumman, alongside aerospace systems, mission systems and technology services. SEE FULL STORY Follow SpaceNews Advertise with Us SN FIRST UP Satcom is sent out every Wednesday by SpaceNews Staff Writer Caleb Henry and SpaceNews Editor-in-Chief Brian Berger. Copyright © 2017 SPACENEWS, All rights reserved.