Northrop Grumman already has more than 20,000 employees in Virginia, many here in the Richmond area.
The move of their main headquarters from Los Angeles to Northern Virginia will mean an additional 300 high paying corporate positions.
Governor Bob McDonnell had been actively courting Northrop Grumman almost from the moment he was elected.
The courting process was delicate, because the state was in the process of renegotiating its contract with the company, after several cost overruns from their operation of the Virginia information technology agency.
Recently, the governor announced that the company's contract had been overhauled and extended by three years.
Northrup Grumman was deciding between Virginia, Maryland or Washington DC.
The Fortune 100 company plans to have their operation in place by the end of 2011.