Lockheed Martin To Buy Sikorsky Aircraft - Quick Facts

(RTTNews) - Lockheed Martin (LMT) said Monday that it agreed to acquire Sikorsky Aircraft, a world leader in military and commercial rotary-wing aircraft, for $9.0 billion. The price is effectively reduced to approximately $7.1 billion, after taking into account tax benefits resulting from the transaction.

The acquisition is subject to customary conditions, including securing regulatory approvals, and is expected to close by late fourth quarter 2015 or early first quarter 2016.

The transaction will have no impact on the company's previously stated commitments to return cash to shareholders through dividends and to reduce outstanding share count to below 300 million shares by the end of 2017.

Separately, Lockheed Martin noted that it will conduct a strategic review of alternatives for its government IT and technical services businesses, primarily in the Information Systems & Global Solutions business segment and a portion of the Missiles and Fire Control business segment. The programs to be reviewed represent roughly $6 billion in estimated 2015 annual sales and more than 17,000 employees.

The IS&GS programs that are not included in the strategic review are mostly focused on defense and intelligence customers and will be realigned into the Corporation's other four business segments following completion of the review.

In addition, United Technologies Corp.'s (UTX) Board has authorized a share repurchase program for up to 75 million shares of the company's common stock, which would be worth approximately $8.3 billion based on the NYSE closing price of UTC shares on July 17.