MDA Space Ltd. has entered into an agreement to purchase Blue Canyon Technologies LLC from Raytheon, a division of RTX Corp., for $620 million in cash. The Canadian aerospace company announced the transaction on Thursday, marking a significant expansion of its operational footprint in the United States.
The acquisition provides MDA Space with a workforce exceeding 400 employees and two manufacturing facilities located in Denver, Colorado. Crucially, the deal transfers U.S. security clearances to MDA Space, enabling the firm to pursue classified defense contracts. According to SpaceNews, approximately 75 percent of Blue Canyon’s revenue is derived from defense-related activities.
Mike Greenley, chief executive officer of MDA Space, described the move as establishing a strategic foothold in a critical defense market. He stated that the purchase allows the company to compete as a prime contractor on U.S. government programs rather than remaining solely a supplier to larger defense firms.
Greenley noted that Blue Canyon offers an established U.S. presence and a proven track record of program delivery, which opens pathways for classified work.
Blue Canyon Technologies was founded in 2008 to design and manufacture small satellites, spacecraft buses, and mission systems. It became part of Raytheon in 2020. The company has supported more than 85 spacecraft launches and currently has over 3,500 products operating in orbit. Financial projections indicate that Blue Canyon’s revenue will reach $160 million this year, an increase from the $115 million recorded in 2023.
MDA Space reported that the deal expands its opportunity pipeline by approximately $3.5 billion and is expected to boost adjusted earnings per share starting in 2027. The purchase is funded through senior secured debt and requires approval from several regulatory bodies, including a national security review by the Committee on Foreign Investment in the United States.
The company targets closing the transaction before the end of the year.