Lockheed Martin (LMT) has agreed to buy the maker of Blackhawk Helicopters, Sikorsky Aircraft from United Technologies. The deal will be worth $9 billion but actual cost will be reduced to around $7.1 billion when tax benefits are taken into account. The Pentagon’s main weapons supplier also announced a review of its government IT and technical services businesses as well as part of its missiles and fire control segment, which employ around 17,000 staff in total and will account for roughly $6 billion of this year’s annual sales. The purchase of Sikorsky, the world’s biggest helicopter manufacturer, will give a welcome boost to Lockheed Martin’s revenues, which have been hit by government spending cuts. The deal will ease Lockheed’s dependence on its F-35 fighter jet business and add an expansive product line. The deal will be Lockheed’s biggest investment in two decades since in took over Marietta Corp for around $10 billion. The acquisition is set to be finalized at the start of 2016 and is now subject to regulatory approval. The defense department could object to the merging of two of its key suppliers but antitrust objections are not expected.
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