MDA Space (TSX:MDA) announced that it has agreed to acquire US-based Blue Canyon Technologies in an all-cash transaction valued at US$620 million, or about C$874 million.
Blue Canyon Technologies, currently part of RTX's Raytheon business, manufactures spacecraft and satellite components and provides mission services.
The company, founded in 2008, has more than 85 spacecraft launched and over 3,500 products operating in orbit.
MDA (TSX:MDA) Space said that the acquisition is expected to expand its addressable market and strengthen its position in the US government and defence space sector. BCT employs more than 400 people and operates two manufacturing facilities in Denver, Colorado.
"The acquisition of Blue Canyon Technologies is expected to accelerate our growth strategy by increasing our U.S. market opportunities with highly complementary capabilities, local manufacturing footprint and a skilled and specialized talent base," MDA Space CEO Mike Greenley said in a statement.
MDA Space said that BCT's business is profitable and cash-generating and is expected to be accretive to adjusted EBITDA and adjusted earnings per share in 2027.
The acquisition is also expected to add approximately US$3.5 billion, or C$4.9 billion, to the company's opportunity pipeline.
The transaction is expected to close by the end of 2026, subject to customary closing conditions and regulatory approvals.
MDA Space said that the acquisition is fully financed through senior secured debt and that its pro forma leverage for 2026 is expected to remain within its target range of 1.5 times to 2.5 times net debt to last-12-month adjusted EBITDA.