Stories
Stories
Alumni-Founded Aerospace Pioneer Orbital Acquired for $7.8 Billion
Orbital ATK—which was founded in 1982 by three HBS classmates—was sold this week to defense contractor Northrop Grumman for a reported $7.8 billion. In this excerpt from the March 2016 Bulletin, Orbital CEO David Thompson (MBA 1981) reflected on the company’s beginnings, dreamed up in the wake of a funding decline for NASA—Thompson’s employer at the time—in the 1970s:
Thompson began thinking about a new kind of organization—a private-sector firm that would attract young engineers to work on exciting projects like designing rockets for satellite delivery. Besides, he held the “naive view that starting a space company might be fun and profitable.” Founded with two HBS classmates, Bruce Ferguson (MBA 1979, JD 1981) and Scott Webster (MBA 1981), with capital supplied by maxed-out credit cards, Orbital Sciences Corporation launched in April 1982, the first corporate entrant at the prime contractor level in nearly three decades.
According to Bloomberg, the acquisition is the largest defense industry deal since Lockheed Martin bought Sikorsky Aircraft two years ago, and will make Northrop the fourth-largest Pentagon contractor. In a statement about the deal, Thompson said: “The unique alignment in culture and mission offered by this transaction will allow us to maintain strong operational performance on existing programs while we pursue new opportunities that require the enhanced technical and financial resources of a larger organization. Our employees will also benefit from greater development and career opportunities as members of a larger, more diverse aerospace and defense enterprise.”
The deal is expected to close in the first half of 2018.
Post a Comment
Related Stories
-
- 11 Jul 2025
- HBS Clubs
Utah Club Dives into Great Salt Lake’s Challenges; Colorado Alumni Talk Defense Over Breakfast
By: Margie Kelley -
- 01 Mar 2025
- HBS Magazine
Forward Thinking
Re: Matthew C. Weinzierl (Joseph and Jacqueline Elbling Professor of Business Administration Senior Associate Dean for Faculty Development and Research); By: Alexander Gelfand; Illustrations by Franziska Barczyk -
- 15 Apr 2024
- HBS News
SPACE: The Final Frontier For Angel Investors?
Re: Matthew C. Weinzierl (Joseph and Jacqueline Elbling Professor of Business Administration Senior Associate Dean for Faculty Development and Research) -
- 11 Apr 2024
- Skydeck
Mission Control
Re: Peter Platzer (MBA 2002)
Stories Featuring Dave Thompson
-
- 15 Dec 2013
- The Washington Post Online
The Right Stuff
Re: Dave Thompson (MBA 1981) -
- 08 Dec 2013
- Washington Post
Orbital Sciences Explores Outer Space for Dollars
Re: Dave Thompson (MBA 1981) -
- 26 Apr 2013
- AFP
Orbital Sciences Launches Antares Rocket
Re: Dave Thompson (MBA 1981)