MDA Space to Buy Blue Canyon Technologies in $620 Million Deal

MDA Space, a Canadian space technology company, has agreed to purchase U.S. vehicle operator Blue Canyon Technologies from Raytheon for $620 million in cash.

As governments globally increase spending on defence and space programs, the acquisition will strengthen MDA Space’s footprint in the US defence space market.

Acquisition Expands US Space Presence 

Private deals provide cashflow to fund stock acquisitions, and the acquisition expands US Defence Systems’ presence in the defence space. MDA Space stated that the acquisition will incorporate Blue Canyon’s spacecraft manufacturing operations into its business portfolio. It also adds two facilities in Denver, Colorado and over 400 staff members to its company.

The agreement comes as an increase in government spending on defense and space programs is opening prospects for companies engaged in satellites, spacecraft and related technologies. The announcement comes on the heels of $75 billion raised via its IPO last week, and a recent Nasdaq debut by.

Blue Canyon Technologies Operations

Founded in 2008, Blue Canyon Technologies designs and manufactures small satellites as well as spacecraft buses and mission systems for commercial, civil and defense applications. Since it is 2020 purchase by RTX, the Colorado-based company has been organized as part of the Raytheon business. MDA Space stated that the deal strengthens its presence in a space technology market experiencing rapid growth.

MDA Space believes this acquisition will add approximately $3.5 billion of pipeline opportunities to the company.

Source: Reuters 

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