MDA Space Agrees to Acquire Blue Canyon Technologies for $620 Million
Deal Would Give Canadian Space Firm a US Defense Market Foothold and Denver Manufacturing Base
MDA Space Ltd. has signed a definitive agreement to acquire Blue Canyon Technologies LLC from RTX’s Raytheon business for $620 million in an all-cash transaction.
“The acquisition of Blue Canyon Technologies is expected to accelerate our growth strategy by increasing our US market opportunities.”
Mike Greenley, MDA Space
Blue Canyon Technologies (BCT), founded in 2008, is a spacecraft and satellite component manufacturer and mission services provider based in Denver, Colorado. The company has more than 85 spacecraft launched and more than 3,500 products on orbit. BCT employs more than 400 people across two manufacturing facilities in Denver — both located in one of the country’s established space and aerospace industry clusters.
The transaction is fully committed and financed through senior secured debt at signing. MDA Space said it expects the deal to close by the end of 2026, pending customary closing conditions and required regulatory approvals. The purchase price is subject to adjustment and represents an enterprise value of approximately 874 million Canadian dollars at current exchange rates.
“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.”
BCT’s existing opportunity pipeline stands at approximately $3.5 billion (approximately $4.9 billion Canadian). MDA Space said the transaction is expected to be accretive to Adjusted EBITDA and Adjusted EPS in 2027.
BCT’s 18-year operating history includes a product portfolio spanning a range of missions across the space economy, with a stated focus on US government defense applications. The company’s spacecraft buses and satellite components serve a customer set that MDA Space said is complementary to its existing base, which is primarily Canadian. BCT’s flight heritage includes more than 3,500 products currently on orbit across its full mission record.
For MDA Space, a Toronto-headquartered company that trades on both the Toronto Stock Exchange and the New York Stock Exchange under the ticker MDA, the acquisition represents a direct entry into US government defense space with domestically based manufacturing. That domestic footprint is a threshold requirement for many US government space contracts. MDA Space said it would evaluate opportunities to optimize its capital structure over time, subject to market conditions and broader capital deployment priorities.
BCT currently operates as part of RTX’s Raytheon business. The transaction terms are all-cash — $620 million represents the full enterprise value, subject to standard purchase price adjustments at closing. No contingent consideration or equity exchange was announced.
MDA Space said the deal is expected to result in 2026 pro forma leverage within its stated target range of 1.5x to 2.5x net debt to last twelve months adjusted EBITDA.
The transaction, if completed, adds a profitable and cash-generating asset to MDA Space’s portfolio, extends its addressable market into US defense space, and brings a $3.5 billion pipeline of potential business. MDA Space did not disclose BCT’s annual revenue or earnings in the announcement.
Regulatory review and customary closing conditions stand between the agreement and completion. Closing is targeted for before December 31, 2026.