Aerojet Rockedyne will soon be coming under the umbrella of Lockheed Martin.

On Sunday, the defense company announced that it "entered into a definitive agreement to acquire Aerojet Rocketdyne Holdings, Inc. for $56 per share in cash."

The transaction has a total value of $4.4 billion "including the assumption of net cash."

"Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base and reduce costs for our customers and the American taxpayer," said James Taiclet, Lockheed Martin president and CEO.

"This transaction enhances Lockheed Martin's support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology. We look forward to welcoming their talented team and expanding Lockheed Martin's position as the leading provider of 21st century warfare solutions."

Aerojet Rocketdyne has nearly 5,000 employees and 15 primary operation sites across the United States, including in Huntsville. On June 7, 2019, the company opened its state-of-art rocket propulsion Advanced Manufacturing Facility.

The company manufactures the RS-25 engines, which will power NASA's Space Launch System (SLS).

In its release, Aerojet Rocketdyne described the deal as "an all-cash transaction with a total equity value of $5 billion.

"We are pleased to bring together our complementary companies in a transformative transaction that will provide premium cash value for our shareholders and tremendous benefits for our employees, customers and partners,” said Eileen P. Drake, CEO and President of Aerojet Rocketdyne.

“Joining Lockheed Martin is a testament to the world-class organization and team we’ve built and represents a natural next phase of our evolution. As part of Lockheed Martin, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration. On behalf of the Aerojet Rocketdyne Board and management team, I’d like to thank all of our employees for their unwavering dedication and focus in helping us achieve this great milestone."

The transaction is expected to close in the second half of 2021. Lockheed Martin will host a live webcast discussing the deal on Monday, December 21 at 7:30 a.m. CST. To watch it and view the relevant financial charts, click here.