MDA Space buys RTX's Blue Canyon for $620M to break into US defense space
Canada's MDA gets a cleared US smallsat manufacturer, two Denver plants and a $3.5 billion defense pipeline for $620 million in cash.
Canada's MDA gets a cleared US smallsat manufacturer, two Denver plants and a $3.5 billion defense pipeline for $620 million in cash.
MDA Space agreed to buy Blue Canyon Technologies from RTX's Raytheon business for $620 million in cash, the Canadian firm said on June 19 in a statement it cast as a foothold in the US defense space market.
Blue Canyon builds spacecraft and satellite components from two plants in the Denver area. Founded in 2008, the company has put more than 85 spacecraft and 3,500 products on orbit and employs over 400 people, per MDA's release and SpaceNews. About 75% of its revenue is defense-related, GuruFocus reported.
CEO Mike Greenley told analysts that Blue Canyon's US security clearance could open classified American work to MDA, and that the unit adds a $3.5 billion opportunity pipeline, Via Satellite and GuruFocus reported.
RTX is shedding the unit as it reshapes its portfolio, Simply Wall St noted, while US government demand for small satellites keeps rising. The all-cash deal is financed through senior secured debt, is expected to close by the end of 2026 and to lift adjusted earnings in 2027, MDA said. MDA shares rose 4% in Toronto.
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Subscribe Free →MDA said it is still pursuing acquisitions in the US and Europe. The purchase needs US regulatory approval of a Canadian owner for Blue Canyon's classified base before it closes.
Frequently Asked Questions
What did MDA Space agree to buy?
MDA Space signed a definitive agreement on June 19 to acquire Blue Canyon Technologies, a spacecraft and satellite-component manufacturer, from RTX's Raytheon business for $620 million in cash, according to MDA's release and SpaceNews.
Who is Blue Canyon Technologies?
Founded in 2008, Blue Canyon is a Colorado smallsat and component maker with two Denver-area plants and over 400 employees that has launched more than 85 spacecraft and put 3,500-plus products on orbit, per MDA's statement. GuruFocus reported about 75% of its revenue is defense-related.
Why does MDA want it?
CEO Mike Greenley told analysts that Blue Canyon's US security clearance could let MDA pursue classified American defense work, and that the unit adds a $3.5 billion opportunity pipeline, according to Via Satellite and GuruFocus.
When does the deal close?
MDA said the all-cash transaction is financed through senior secured debt and is expected to close by the end of 2026, subject to regulatory approvals, and to be accretive to adjusted earnings in 2027.
Why is RTX selling?
RTX is reshaping its portfolio, Simply Wall St noted, divesting the smallsat unit even as demand for small satellites rises across US government and commercial customers.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.