WASHINGTON — In a major move to solidify its presence in the United States, Canadian space technology heavyweight MDA Space announced on June 19 a definitive agreement to acquire smallsat manufacturer Blue Canyon Technologies (BCT) from aerospace giant RTX (formerly Raytheon) for $620 million in an all-cash transaction.
The acquisition is a calculated bid by MDA Space to aggressively penetrate the highly lucrative and notoriously restrictive U.S. government defense sector.
A Strategic Foothold in U.S. Defense
Founded in 2008 and later bought by Raytheon in 2020, Colorado-based BCT has established itself as a premier manufacturer of small satellites (smallsats) and key spacecraft components. The company currently employs over 400 people across two facilities and is on a strong financial trajectory; projecting $160 million in revenue for 2026, a substantial rise from the $115 million reported in 2023.
Crucially for MDA Space, roughly 75% of BCT’s revenue stems from defense-related contracts.
“BCT advances this dynamic as it provides us with an established U.S. presence, proven program delivery to U.S. defense customers and a pathway to pursue classified work and compete for prime contracts in our own right…This is a strategic foothold in the world’s most important defense market.”
– Mike Greenley, MDA Space Chief Executive
Internal Synergies and Vertical Integration
Beyond market access, the acquisition aligns with MDA Space’s broader strategy of vertical integration. BCT is already a candidate supplier in MDA’s existing supply chain, and bringing them in-house opens up immediate opportunities to optimize spacecraft manufacturing.
MDA Space Acquisition Strategy
| Priority | Objective | BCT Alignment |
| Vertical Integration | Absorb key technologies to secure pipelines and control costs. | Absorbs top-tier smallsat components directly into MDA’s manufacturing. |
| Geographic Distribution | Establish active footprints in the U.S. and Europe. | Secures two fully operational, defense-vetted facilities in Colorado. |
“We’ve been clear the last two to three years that in M&A, we will always look for two things: vertical integration opportunities… and geographic distribution,”
– Mike Greenley, MDA Space Chief Executive
The Next Steps
While RTX has not publicly commented on its decision to divest the profitable, cash-flow-positive smallsat builder, MDA Space simply jumped on the opportunity when BCT was put on the market.
The deal is expected to close by the end of 2026, pending standard regulatory approvals. This includes a crucial review by the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes foreign acquisitions of domestic defense and technology assets.
This purchase marks MDA Space’s second major international acquisition in recent years, following its buyout of Israeli satellite chipmaker SatixFy.
MDA Space isn’t finished growing yet, the company maintains a “strong short list of candidates” for future acquisitions across both the U.S. and Europe.
