MDA Space Ltd., which is regarded as a reliable mission partner to the fast-growing global space industry, has entered into a definitive contract to buy 100% membership interests of BCT – Blue Canyon Technologies LLC in an all-cash deal for a purchase cost and enterprise value of US$620 million, which is almost C$874 million, which is subject to purchase price adjustments.
Blue Canyon Technologies – BCT is a provider of mission services and also a manufacturer of spacecraft as well as satellite components and is a part of Raytheon’s business of RTX.
Since being founded in 2008, BCT has launched over 85 spacecraft and has more than 3,500 products on orbit, with outstanding flight heritage and mission success rates. The transaction, upon closing, is anticipated to give MDA Space an advantageous business and manufacturing presence to capitalize on the increasing demand in the U.S. government market when it comes to defense space missions. Headquartered in Denver, Colorado, which is the space and aerospace capital, BCT has more than 400 highly skilled people working across two manufacturing facilities. BCT offers a rich and creative portfolio of products, powering a wide variety of missions for the space economy.
According to the CEO of MDA Space, Mike Greenley, “The acquisition of Blue Canyon Technologies is expected to accelerate our growth strategy by increasing our US market opportunities with highly complementary capabilities, a local manufacturing footprint, and a skilled and specialized talent base. Securing those strategic benefits on an accretive basis with a profitable and cash-generating business makes this an ideal fit for MDA Space expansion and continued shareholder value creation.”
Transaction Information
The definitive contract to buy 100% membership interests of BCT is bound to deliver a profitable, cash-generative business that is projected to be adjusted to adjusted EBITDA and adjusted EPS in 2027. With 18 years of experience as a supplier of high-quality spacecraft along with satellite components, BCT will add US$3.5B, which is around C$4.9B, to the opportunity pipeline. The deal, which is conditioned by customary closing terms and regulatory authorizations, is projected to be completed by the end of 2026 and is completely committed and funded at the time of signing via senior secured debt. As part of the continuous capital allocation framework, the company will assess opportunities to maximize the efficiency of the capital structure over time, depending on market conditions as well as overall capital deployment objectives. They do expect that this transaction will generate pro forma leverage in 2026 within the targeted net debt to the previous twelve months’ adjusted EBITDA range of 1.5x to 2.5x.