June 19 (Reuters) – Canadian space technology firm MDA Space said on Friday it would buy U.S.-based Blue Canyon Technologies from RTX’s Raytheon business for $620 million in cash, expanding its footprint in the U.S. defense space market.
The acquisition comes as governments increase spending on defense and space programs, providing opportunities for suppliers of satellites, spacecraft and related technologies.
It also follows the Nasdaq debut of SpaceX (SPCX.O) last week, with the firm raising $75 billion in its IPO.
MDA Space said the acquisition would bring Blue Canyon’s spacecraft manufacturing capabilities, two facilities in Denver, Colorado and more than 400 employees.
The deal is expected to close by the end of 2026, subject to regulatory approvals and customary closing conditions.
Founded in 2008, Colorado-based Blue Canyon designs and builds small satellites, spacecraft buses and mission systems for commercial, civil, defense customers. It was acquired by RTX in 2020.
The business would add about $3.5 billion to MDA Space’s opportunity pipeline and is expected to be accretive to adjusted EBITDA and adjusted earnings per share in 2027, the Canadian firm said.
Reporting by Prakhar Srivastava in Bengaluru; Editing by Janane Venkatraman.
