The deal, which includes about $120 million in debt, is not expected to affect ITT's earnings in 2008, but will add to earnings thereafter, ITT said.
Stripping out the assumption of debt and the conversion of notes, the deal is worth about $1.6 billion, or $56 per share in cash, which represents a 9 percent premium over EDO's Friday closing price of $51.51.
"This is central and highly aligned to our overall growth strategy," ITT Chief Executive Steve Loranger told Reuters in an interview. "We like to grow in attractive markets where we play very well. This is a great strategic fit."