Canadian space-technology company MDA Space said on Friday it has reached a definitive agreement to acquire Blue Canyon Technologies from RTX’s Raytheon business for $620 million in cash. The transaction is positioned to extend MDA’s footprint in the U.S. defense space market by incorporating Blue Canyon’s spacecraft manufacturing capabilities into its business.
MDA said the acquisition will include Blue Canyon’s two facilities in Denver, Colorado, and more than 400 employees. The Colorado company, founded in 2008, specializes in designing and building small satellites, spacecraft buses and mission systems for commercial, civil and defense clients. RTX acquired Blue Canyon in 2020.
According to MDA, the addition of Blue Canyon will boost its opportunity pipeline by about $3.5 billion. The Canadian firm also stated the deal is expected to be accretive to adjusted EBITDA and to adjusted earnings per share in 2027. The companies said the transaction is subject to regulatory approvals and customary closing conditions, with an anticipated closing by the end of 2026.
The deal occurs amid rising government spending on defense and space programs, which MDA noted creates opportunities for suppliers of satellites, spacecraft and related technologies. The announcement also follows the recent Nasdaq debut of SpaceX, which the article noted raised $75 billion in its initial public offering.
MDA and RTX provided timing and financial expectations for the acquisition but emphasized that regulatory clearances and standard conditions remain outstanding. Beyond the immediate operational additions - the Denver facilities, workforce and manufacturing know-how - MDA framed the purchase as a way to expand its presence in the U.S. defense-space sector.
Transaction timeline and terms
- Purchase price: $620 million in cash.
- Assets included: Blue Canyon’s spacecraft manufacturing capabilities and two Denver, Colorado facilities.
- Employees: More than 400 staff will join MDA from Blue Canyon.
- Expected close: By the end of 2026, subject to regulatory approvals and customary closing conditions.
Financial and strategic impact
MDA reported the acquisition would add about $3.5 billion to its opportunity pipeline and is expected to enhance adjusted EBITDA and adjusted earnings per share beginning in 2027, according to the company’s statement.
All timing, financial projections and employee counts are as stated by the companies and remain subject to the conditions disclosed above.