MDA Space buys Blue Canyon Technologies from Raytheon for $620M

MDA Space Ltd. has agreed to get Blue Canyon Technologies LLC, a spacecraft and outer constituent shaper owned by RTX Corp.'s Raytheon business, for $620 cardinal successful cash, the Canadian abstraction institution said Thursday.

Through the transaction, MDA Space gains a workforce of much than 400 radical and 2 accumulation sites successful Denver, Colorado, positive U.S. information clearances opening the doorway to classified defence work. About 75% of Blue Canyon's gross comes from defence work, according to SpaceNews.

"This is simply a strategical foothold successful the world's astir important defence market," MDA Space CEO Mike Greenley said.

Greenley said the acquisition would let MDA Space to prosecute classified enactment and vie arsenic a premier contractor connected U.S. authorities programs, alternatively than serving lone arsenic a supplier to larger defence firms. "Historically, we person served U.S. defence customers arsenic a merchant supplier," helium said. "BCT advances this dynamic arsenic it provides america with an established U.S. presence, proven programme transportation to U.S. defence customers and a pathway to prosecute classified enactment and vie for premier contracts successful our ain right."

Blue Canyon got its commencement successful 2008 designing and manufacturing tiny satellites, spacecraft buses, and ngo systems, and was folded into RTX's Raytheon portion successful 2020. The institution reports much than 85 spacecraft launched and upward of 3,500 products presently operating successful orbit. Revenue is expected to scope $160 cardinal this year, a important ascent from the $115 cardinal it recorded successful 2023.

MDA Space said the woody expands its accidental pipeline by astir $3.5 cardinal and projects that it volition assistance adjusted net per stock opening successful 2027. Senior secured indebtedness is backing the purchase, which indispensable wide respective regulatory hurdles earlier it tin beryllium completed — among them a nationalist information reappraisal by the Committee connected Foreign Investment successful the United States — with a targeted closing earlier year-end.

MDA Space said it besides sees imaginable to incorporated Blue Canyon's products into its ain spacecraft. "BCT really is simply a campaigner subordinate of our existent proviso chain," Greenley said. "That's going to beryllium an absorbing synergy to research for america arsenic we spell forward."

With the Blue Canyon woody inactive pending, Greenley indicated MDA Space has not stopped scouting targets, flagging some the U.S. and Europe arsenic regions of interest. The acquisition of outer communications institution SatixFy Communications Ltd., MDA's past completed deal, wrapped up successful July 2025, according to Bloomberg.

MDA Space banal roseate 4% successful Toronto to C$57.95 pursuing the announcement.