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In the Washington region, Orbital has long stood out as one of the few companies that manufactures a tangible product here. Analysts say the latest purchase readies the company to take on larger projects, particularly as the government looks to less-expensive, smaller satellite systems.

The move comes during an unsettled time for NASA and the space industry following President Obama's decision to end much of the Constellation program -- a human space exploration effort -- as well as his plans to pursue a "transformative agenda" for the agency.

Orbital spokesman Barron Beneski said the addition of General Dynamics Advanced Information Systems' Gilbert, Ariz., spacecraft development and manufacturing business not only adds 325 employees -- many with coveted security clearances -- but also provides the company with a state-of-the-art facility.

Orbital paid $55 million in cash for the unit, which it expects will contribute an equal level of revenue by the end of the year. The business was originally founded as Spectrum Astro, and General Dynamics purchased it in 2004.

General Dynamics spokesman Rob Doolittle said the Fairfax-based unit that owned the Gilbert facility has been narrowing its focus, and the business was a better fit for Orbital.

Aerospace analyst Philip Finnegan of the Teal Group said the sale merges two companies with similar cultures.

"When General Dynamics originally bought Spectrum Astro, it was a very small, innovative company known for being able to take on larger companies and do well," he said. "When General Dynamics acquired it, it sort of dropped from the radar screen. . . . What can happen is smaller companies acquired by much larger companies can get sort of lost."

Orbital has close to 2,000 employees in the Washington area -- between 1,600 and 1,700 employees on its Dulles campus and a smaller Greenbelt office. It has absorbed about 30 local General Dynamics employees into its Dulles office, Beneski said.

The purchase is intended to move Orbital into the medium-class rocket and satellite market. According to Beneski, Orbital -- which has specialized in producing small space and rocket systems -- started looking at expanding into larger systems about two years ago.

"It's a bigger market, it's a logical product extension," he said. "These are very capable systems. They're not the most complex, they're not the most technologically advanced, but they provide very good service for the customer at a really good price."

But Orbital realized developing a medium-class satellite would take several years and about $25 million to $30 million in research and development spending.