MDA Space agreed to acquire Blue Canyon Technologies from RTX's Raytheon for $620 million in cash, expanding its U.S. defense-space manufacturing footprint. The deal adds roughly $3.5 billion to MDA's opportunity pipeline and is expected to close by the end of 2026.
MDA Space agreed to acquire Blue Canyon Technologies from RTX's Raytheon for $620 million in cash, expanding the Canadian company's U.S. defense-space manufacturing footprint.
"The acquisition of Blue Canyon Technologies is expected to accelerate our growth strategy by increasing our US market opportunities with highly complementary capabilities, local manufacturing footprint and a skilled and specialized talent base," Mike Greenley, chief executive officer of MDA Space, said.
The all-cash transaction values Blue Canyon, which designs and manufactures spacecraft and satellite components, at an enterprise value of $620 million. The Colorado-based company has launched more than 85 spacecraft and has over 3,500 products on orbit, employing more than 400 people across two manufacturing facilities in Denver. MDA Space will finance the purchase through senior secured debt, with pro forma leverage expected to fall within its target range of 1.5x to 2.5x net debt to adjusted EBITDA. The deal is expected to close by the end of 2026, subject to customary regulatory approvals.
The acquisition gives MDA Space an established U.S. manufacturing base and access to Blue Canyon's government customer relationships, adding roughly $3.5 billion to its opportunity pipeline. MDA Space expects the deal to be accretive to adjusted EBITDA and adjusted earnings per share in 2027. The company's stock has surged 103% year-to-date, giving it a market capitalization of about $5.45 billion.
Blue Canyon Technologies was founded in 2008 and became part of RTX's Raytheon business through a prior acquisition. The company provides mission services alongside its satellite component manufacturing, serving both defense and commercial customers.
MDA Space, headquartered in Brampton, Ontario, employs more than 4,000 people and provides robotics, satellite systems and geointelligence services to the defense and space industry. The company recently opened a new 185,000-square-foot satellite manufacturing facility in Montreal, doubling its manufacturing floor space.
The deal shows intensifying competition among space contractors to secure a foothold in the U.S. defense market, where demand for satellites and spacecraft is accelerating. MDA Space will host a conference call at 8:30 a.m. ET to discuss the transaction.
This article is for informational purposes only and does not constitute investment advice.
