MDA Space Ltd. has agreed to acquire Blue Canyon Technologies LLC, a spacecraft and satellite component manufacturer owned by RTX Corp.'s Raytheon $RTX business, for $620 million in cash, the Canadian space company said Thursday.
Through the transaction, MDA Space gains a workforce of more than 400 people and two production sites in Denver, Colorado, plus U.S. security clearances opening the door to classified defense work. About 75% of Blue Canyon's revenue comes from defense work, according to SpaceNews.
"This is a strategic foothold in the world's most important defense market," MDA Space CEO Mike Greenley said.
Greenley said the acquisition would allow MDA Space to pursue classified work and compete as a prime contractor on U.S. government programs, rather than serving only as a supplier to larger defense firms. "Historically, we have served U.S. defense customers as a merchant supplier," he said. "BCT advances this dynamic as it provides us with an established U.S. presence, proven program delivery to U.S. defense customers and a pathway to pursue classified work and compete for prime contracts in our own right."
Blue Canyon got its start in 2008 designing and manufacturing small satellites, spacecraft buses, and mission systems, and was folded into RTX's Raytheon unit in 2020. The company reports more than 85 spacecraft launched and upward of 3,500 products currently operating in orbit. Revenue is expected to reach $160 million this year, a significant climb from the $115 million it recorded in 2023.
MDA Space said the deal expands its opportunity pipeline by roughly $3.5 billion and projects that it will lift adjusted earnings per share beginning in 2027. Senior secured debt is funding the purchase, which must clear several regulatory hurdles before it can be completed — among them a national security review by the Committee on Foreign Investment in the United States — with a targeted closing before year-end.
MDA Space said it also sees potential to incorporate Blue Canyon's products into its own spacecraft. "BCT actually is a candidate member of our current supply chain," Greenley said. "That's going to be an interesting synergy to explore for us as we go forward."
With the Blue Canyon deal still pending, Greenley indicated MDA Space has not stopped scouting targets, flagging both the U.S. and Europe as regions of interest. The purchase of satellite communications company SatixFy Communications Ltd., MDA's last completed deal, wrapped up in July 2025, according to Bloomberg.
MDA Space stock rose 4% in Toronto to C$57.95 following the announcement.