In a deal which would cost General Atlantic and Kohlberg Kravis Roberts & Co., a whopping $1.65 Billion, Northrop Grumman has agreed to sell the TASC consulting division it currently holds to the two buyout companies.

The deal has come as the latest in a sudden rise of buyouts as conditions around the financial sector improve. Some months back, Northrop had hired some renowned investment banks to help it sell its TASC unit. The development had interested many leading private equity firms.

If sources are to be believed, Northrop was initially expecting a $2 Billion sale. The final price agreed upon is more in line with the expectation pegged by investment banker all across the country. To raise funds for the deal, the companies are looking at various equity and debt options. While nearly half of the deal would be financed with debt, the other half is likely to be funded via equity.

The biggest buyout the has been recorded for the year reached a closure on Thursday when TPG, a private equity firm, and Canada Pension Plan shook on a $4 Billion deal for acquisition of IMS Health Inc.