MDA Space will buy Blue Canyon Technologies, the small satellite manufacturing and mission services arm of US defence contractor RTX Raytheon, for $620 million USD ($874 million CAD).
The news: Brampton, Ont.-based MDA announced on Friday morning that it will acquire the satellite maker in an all-cash transaction financed by secured debt.
The deal is expected to close later this year. MDA says it will provide a business and manufacturing footprint that will help it take advantage of growing demand for defence space missions from the US government. The company says Blue Canyon is a profitable business that will add $3.5 billion USD in sales opportunities.
From the source: “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,” MDA Space CEO Mike Greenley said in a statement.
RELATED: MDA Space aims to deliver up to 400 satellites per year after Montréal facility expansion
Following the thread: MDA recently completed the expansion of its Montréal satellite manufacturing facility to chase demand for satellite constellations, which the company wants to become a leading contractor for.
When MDA debuted on the New York Stock Exchange in March, it said it would use the roughly $300 million USD of proceeds to pursue growth strategies, including acquisitions.
Final thought: MDA already has US offices in Texas and Pennsylvania, but the Blue Canyon acquisition will add more than 400 employees and two manufacturing facilities in Colorado, a key hub of both government and aerospace talent.
There are over 2,000 aerospace businesses directly employing over 55,000 people in the state, according to the Colorado Office of Economic Development and International Trade. The acquisition will help MDA establish a presence near the major space and defence agencies that are headquartered there, including NORAD, United States Space Command, and Space Force Operations Command.
Feature image courtesy RTX.