When two neutron stars or black-holes come closer and closer, their angular velocity increases with decrease of distance and they start to revolve around a constant center with high relativistic speeds due to the influence of gravity... At last,
- Neutron-stars collide to produce a giant explosion...
- Black-holes collide to form super-massive black-holes...
(Even two neutron stars merge to form black-holes, based on the answer)
So, What are observed during and after this collision..? Magnetic fields & short GRBs only..?