MDA Space has signed a definitive agreement to acquire Blue Canyon Technologies (BCT) from RTX’s Raytheon business in an all-cash transaction valued at $620 million, or approximately C$874 million.
The acquisition is expected to strengthen MDA Space’s position in the growing U.S. government and defense space market while expanding its spacecraft manufacturing capabilities and operational footprint in the United States.
The transaction remains subject to customary closing conditions and regulatory approvals and is expected to be completed by the end of 2026.
Expanding U.S. Space Capabilities
Founded in 2008, Blue Canyon Technologies has become a well-established spacecraft and satellite component manufacturer, supporting a wide range of commercial, civil and national security space missions.
The company has more than 85 spacecraft launched and over 3,500 products currently operating in orbit.
Blue Canyon employs more than 400 people and operates two manufacturing facilities in Denver, Colorado, a major hub for the U.S. aerospace and space industry.
The acquisition is expected to provide MDA Space with a stronger manufacturing presence in the United States and access to additional government and defense-related opportunities.
“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,” said Mike Greenley, CEO of MDA Space.
“Securing those strategic benefits on an accretive basis with a profitable and cash-generating business makes this an ideal fit for MDA Space expansion and continued shareholder value creation.”
Strengthening Growth Strategy
MDA Space said the acquisition aligns with its broader strategy of expanding its role as a mission partner for government, defense and commercial space customers.
Blue Canyon’s portfolio includes spacecraft platforms, satellite subsystems, components and mission services that support a broad range of space applications.
The company is expected to add approximately $3.5 billion (C$4.9 billion) to MDA Space’s opportunity pipeline, enhancing future growth prospects.
Financial Impact
According to MDA Space, the acquisition will bring a profitable and cash-generating business into its portfolio.
The company expects the transaction to be accretive to both adjusted EBITDA and adjusted earnings per share in 2027.
The deal will be financed through senior secured debt that has been fully committed at signing.
Following completion, MDA Space expects its 2026 pro forma leverage ratio to remain within its stated target range of 1.5x to 2.5x net debt to adjusted EBITDA.
Management said it will continue evaluating opportunities to optimize the company’s capital structure over time, taking into account market conditions and future capital allocation priorities.
Positioning for Defense Space Growth
The acquisition comes as demand for defense and national security space capabilities continues to rise, particularly in the United States.
By adding Blue Canyon’s spacecraft manufacturing expertise, flight heritage and established customer relationships, MDA Space aims to strengthen its competitiveness across government, defense and commercial space markets.
The transaction is also expected to expand the company’s ability to support future satellite constellations, defense space programs, scientific missions and emerging space economy opportunities.
With Blue Canyon’s proven spacecraft platforms and extensive orbital track record, MDA Space is positioning itself to capture a larger share of the rapidly growing global space industry.
