Canadian space technology company MDA Space announced an agreement on Friday to purchase U.S.-based Blue Canyon Technologies from RTX’s Raytheon business for $620 million in cash. The deal is positioned to expand MDA Space’s footprint in the U.S. defense space market by adding Blue Canyon’s spacecraft manufacturing capabilities and a workforce of over 400.
Under the terms disclosed, the acquisition includes two Blue Canyon facilities located in Denver, Colorado. MDA Space said the transaction is expected to close by the end of 2026, and is conditional on receiving regulatory approvals and satisfying customary closing conditions.
Blue Canyon, founded in 2008 and based in Colorado, specializes in the design and construction of small satellites, spacecraft buses and mission systems for commercial, civil and defense customers. RTX acquired Blue Canyon in 2020.
MDA Space said the purchase will add approximately $3.5 billion to its opportunity pipeline. The Canadian firm also projected the business would be accretive to adjusted EBITDA and adjusted earnings per share in 2027.
The deal comes as governments are increasing spending on defense and space programs, which the companies cited as creating opportunities for suppliers of satellites, spacecraft and associated technologies. The announcement also follows the recent Nasdaq debut of SpaceX, which raised $75 billion in its initial public offering.
MDA Space characterized the addition of Blue Canyon's manufacturing capabilities and Denver facilities as a strategic expansion of its U.S. presence in both commercial and defense-oriented segments of the space market. The timeline outlined by MDA indicates a closing window through the end of 2026, with expected financial accretion in the subsequent year, 2027.
The transaction remains subject to the standard regulatory review processes and the satisfaction of customary closing criteria, which the companies said must be completed before the deal is finalized.
Deal specifics at a glance
- Purchase price: $620 million in cash.
- Seller: RTX’s Raytheon business.
- Target: Blue Canyon Technologies, founded 2008; acquired by RTX in 2020.
- Assets included: spacecraft manufacturing capabilities, two facilities in Denver, Colorado, and more than 400 employees.
- Timing and conditions: expected close by end of 2026, subject to regulatory approvals and customary closing conditions.
- Financial outlook: adds about $3.5 billion to MDA Space’s opportunity pipeline; expected to be accretive to adjusted EBITDA and adjusted earnings per share in 2027.