MDA Space Ltd. (TSX:MDA) (NYSE:MDA) has signed a definitive agreement to acquire 100% of the membership interests of Blue Canyon Technologies LLC (BCT) in an all-cash transaction valued at US$620 million (approximately C$874 million), subject to purchase price adjustments. BCT, a spacecraft and satellite component manufacturer and mission services provider, is currently part of RTX's Raytheon business.
Strategic Expansion
This acquisition positions MDA Space to further pursue substantial US defence market opportunities. With over 85 spacecraft launched and 3,500+ products on orbit, BCT has established impressive flight heritage and mission success since its founding in 2008. The transaction adds a profitable, cash-generating business with an 18-year history and is expected to be accretive to Adjusted EBITDA and Adjusted EPS in 2027.
Complementary Capabilities
BCT offers a diverse and innovative product portfolio that enables a broad range of missions for the space economy. The acquisition adds US$3.5 billion (approximately C$4.9 billion) to MDA Space's opportunity pipeline. With over 400 highly skilled employees and two manufacturing facilities in the Denver, Colorado space and aerospace hub, BCT provides complementary technology and a skilled talent base.
"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."
Transaction Details
The transaction is expected to close by the end of 2026, subject to customary closing conditions and required regulatory approvals. It is fully committed and financed at signing through senior secured debt. As part of ongoing capital allocation, MDA Space will evaluate opportunities to optimize its capital structure over time. The transaction is expected to result in 2026 pro forma leverage within the stated target range of 1.5x to 2.5x net debt to last twelve months adjusted EBITDA.
