MDA Space to buy Blue Canyon Technologies to gain foothold in U.S. market

DARPA selected the Blue Canyon Technologies X-SAT Saturn bus for the Blackjack program. Credit: Raytheon Technologies Credit: Blue Canyon Technologies

WASHINGTON — MDA Space is buying smallsat manufacturer Blue Canyon Technologies (BCT) for $620 million, giving the Canadian company greater access to the lucrative U.S. government market.

MDA Space announced June 19 that it would buy BCT from RTX, parent company of Raytheon, in an all-cash deal. The deal is expected to close by the end of the year pending regulatory approvals, including a review by the Committee on Foreign Investment in the United States, or CFIUS.

BCT, founded in 2008 and acquired by Raytheon in 2020, builds smallsats and smallsat components. It has more than 400 employees in two Colorado facilities. It is projected to generate $160 million in revenue in 2026, up from $115 million in 2023, and is cash-flow positive.

In a call with analysts, MDA executives described the acquisition as a strategic move to allow the company to win more business from the U.S. government, particularly in defense. About 75% of BCT’s revenue comes from defense work.