Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials HomeInnovationMDA Space to buy U.S. peer for $874 million to pry open American marketThe Brampton-based space and satellite technology company expects new contracts to materialize in the next 24 months You can save this article by registering for free here. Or sign-in if you have an account.MDA supplies U.S. defence contractors with satellite and space equipment made in Montreal, but its ability to compete for U.S. contracts is hindered by its lack of an American manufacturing footprint. Photo by Michael M. Santiago/Getty ImagesMDA Space Ltd. says it’s acquiring Colorado-based Blue Canyon Technologies Inc. for $874 million in an effort to secure more American contracts as the Canadian satellite maker continues its global expansion.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Subscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorBrampton, Ont.-based MDA on Friday said it has agreed to buy the satellite and spacecraft component maker from Virginia-based defence and aerospace giant RTX Corp., formerly known as Raytheon Technologies Corp. The all-cash transaction is expected to close by year-end.MDA chief executive Mike Greenley said the deal will boost MDA’s ability to cinch United States contracts and the company expects new defence and civil space opportunities to materialize over the next 24 months.Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againBlue Canyon Technologies has U.S. security clearance that will allow MDA to bid on classified work involving “satellite opportunities across the full spectrum of the defence sector,” he said.Once the deal is completed, MDA will have a U.S. subsidiary with “substantial local operations and established capabilities,” Greenley said. Blue Canyon has two manufacturing facilities in Colorado with more than 400 employees.It will also boost MDA’s pipeline of global opportunities to nearly US$45 billion from US$40 billion.Analysts said the acquisition is a positive move that will significantly open up opportunities for MDA to secure U.S. government and defence contracts.MDA already supplies the five biggest U.S. defence contractors with satellite and space equipment made in its Montreal factory, but its ability to compete for U.S. contracts has been hindered by its lack of an American manufacturing footprint, BMO Capital Markets Corp. analyst Thanos Moschopoulos said.MDA has been able to win U.S. government contracts because of its established capabilities in key areas such as satellite antennas, but a Canadian company manufacturing out of Canada faces a high bar, he said.“Having a U.S. presence should make MDA much more competitive when bidding on future work (and) allow it to bid as a prime contractor for American government opportunities” rather than just a subcontractor, he said.Moschopoulos also said Blue Canyon Technologies’ portfolio of products, such as small satellites and other systems and components, could help MDA secure contracts with other Canadian and international governments and commercial satellite operators.“It may allow MDA to expand the scope of solutions it can offer to customers, particularly as it will now have a broader range of satellite bus designs in its portfolio,” he said.Benoit Poirier, an analyst at Desjardins Group, said in a note that the acquisition gives MDA an asset that has complementary technologies, customers and capabilities that strategically expand its U.S. footprint.Greenley in May outlined MDA’s strategy to buy established companies across the U.S. and Europe to expand worldwide and lock down global contracts as countries around the world shore up their own sovereign technologies.It completed a US$300-million initial public offering on the New York Stock Exchange in March to tap U.S. investors and capital for upcoming M&A.“Canada’s only so big. A necessary part of our (company’s) future is to be able to export to the U.S., as well as Europe and the rest of the world,” Greenley said at the time, adding that MDA is aiming to set up U.S. and European subsidiaries via acquisitions. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.