en.Wedoany.com Reported - Canadian space company MDA Space has announced the acquisition of U.S. small satellite manufacturer Blue Canyon Technologies (BCT) for $620 million, aiming to expand its business in the U.S. government market, particularly in the defense sector. The all-cash transaction, purchased by MDA Space from RTX, the parent company of Raytheon, on June 19, is expected to close by the end of the year, pending regulatory approvals including from the Committee on Foreign Investment in the United States (CFIUS).

Founded in 2008 and acquired by Raytheon in 2020, BCT primarily manufactures small satellites and their components. The company operates two facilities in Colorado and employs over 400 people. BCT is projected to generate $160 million in revenue in 2026, up from $115 million in 2023, with positive cash flow. Approximately 75% of its revenue comes from defense projects.

In a conference call with analysts, MDA Space CEO Mike Greenley described the acquisition as a strategic move to win more U.S. government business. "Historically, we have served U.S. defense customers as a commercial supplier," Greenley said. "BCT advances this dynamic because it provides us with a solid presence in the U.S., a proven track record of delivering projects to U.S. defense customers, and the ability to conduct classified work and compete for prime contractor contracts with our own capabilities." He added, "This is a strategic foothold in the world's most important defense market."

Additionally, MDA Space plans to explore opportunities to integrate BCT products into its own spacecraft. "BCT is actually a candidate member of our current supply chain," Greenley said. "As we move forward, this will be an interesting synergy to explore." He noted that the deal aligns with the company's growth plans through mergers and acquisitions, with key focuses including vertical integration to strengthen supply chain control and geographic expansion in the U.S. or Europe.

Greenley stated that he is not aware of the specific reasons behind RTX's decision to sell BCT, only that MDA Space participated in the sale process. RTX did not immediately respond to a request for comment. The acquisition comes a year after MDA Space acquired Israeli satellite chip manufacturer SatixFy. Greenley did not rule out the possibility of further acquisitions, stating that the company "does have a strong shortlist" in the U.S. and Europe, and that companies capable of strengthening MDA Space's presence in the U.S. would be among the targets.

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