WASHINGTON — Lockheed Martin will acquire Aerojet Rocketdyne in a $4.4 billion deal that will allow the defense giant to beef up its technical know-how in the areas of space, propulsion and munitions, the companies announced Dec. 20.

The acquisition signals Lockheed’s continued interest in the areas of hypersonic weapons and space — two major technology development priorities for the Defense Department and two areas of increased investment in recent years.

In particular, the acquisition would add “substantial expertise” to Lockheed in the area of propulsion, as Aerojet’s engines are already part of its supply chain across the company’s space, aeronautics and missile and fire control business units, Lockheed said in a news release

“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 Lockheed President and CEO Jim Taiclet. “This transaction enhances Lockheed Martin’s support of critical U.S. and allied security missions and retains national leadership in space and hypersonic technology.”

The transaction is expected to close in the second half of 2021.

The agreement calls for Lockheed to pay $56 per share in cash, which is expected to be reduced to $51 per share after the payment of a pre-closing special dividend.

Lockheed Martin ranked first on Defense News’ Top 100 list of defense companies in 2020. Aerojet was No. 51 on the list. Aerojet Rocketdyne logged approximately $2 billion in revenue in 2019 and has about 5,000 workers across 15 sites.

Sacramento, California-based Aerojet is providing the primary propulsion for both Lockheed’s and Boeing’s entrant to build a next-generation missile defense interceptor for the Missile Defense Agency.

In addition, the company has supplied the upper stage engine for United Launch Alliance’s Atlas 5 rocket and the upper and main-stage engines for the Delta 4 rocket. United Launch Alliance, a joint venture between Lockheed Martin and Boeing, is phasing out both vehicles.