Space and opportunity, MDA Space to acquire Blue Canyon Technologies for $620M

MDA Space Ltd. (MDA, NYSE: MDA) has signed a definitive agreement to acquire Blue Canyon Technologies LLC (BCT), a spacecraft and satellite component manufacturer currently part of RTX’s Raytheon business, for US$620 million (approximately C$874 million) in an all-cash transaction, subject to purchase price adjustments.

Founded in 2008 and based in Denver, Colorado, BCT has more than 85 spacecraft launched and over 3,500 products on orbit. The company employs more than 400 people across two manufacturing facilities in the Denver area and provides spacecraft components and mission services.

According to the company’s press release, the transaction is expected to add approximately US$3.5 billion (C$4.9 billion) to MDA Space’s opportunity pipeline. The deal is fully committed and financed at signing through senior secured debt, and is expected to close by the end of 2026, subject to customary closing conditions and required regulatory approvals.

MDA Space said the transaction is expected to be accretive to Adjusted EBITDA and Adjusted EPS in 2027, and that 2026 pro forma leverage is expected to fall within the company’s stated target range of 1.5x to 2.5x net debt to last twelve months adjusted EBITDA.