In 1994, partly due to the loss of the Advanced Tactical Fighter contract to Lockheed Martin and the removal of their proposal from consideration for the Joint Strike Fighter competition, the company bought Grumman to form Northrop Grumman.
Dette varede til 1994, da tabet af Advanced Tactical Fighter kontrakten til Lockheed Martin og afvisningen af deres forslag til Joint Strike Fighter konkurrencen gjorde, at selskabet slog sig sammen med Grumman Aircraft Engineering Corporation og sammen dannede Northrop Grumman Corporation.