Blue Canyon acquisition and implications

研报英文原文证据摘录

Blue Canyon acquisition and implications

Deutsche Bank

Research

Rating Company Date

Buy MDA Space 23 June 2026

Company Update

North America

Canada

Reuters Bloomberg Exchange Ticker Price at 18 Jun 2026 (USD) 39.40

MDA.N MDA US NYS MDA

Price Target 40.00

Industrials

52-week range 48.68 - 27.21

Space Technology

Blue Canyon acquisition and

Valuation & Risks implications

Edison Yu

Transaction details Research Analyst

MDA announced on Friday it will acquire Blue Canyon Technologies (BCT) from RTX +1-212-250-7263

in a $620m all-cash deal. Blue Canyon is expected to generate $160m in revenue

Laura Li

this year (up from $115m in 2023 or 12% CAGR), implying a nearly 4x multiple. In Research Associate

terms of EBITDA, Blue Canyon's margin is "aligned" with MDA at 18-20% +1-212-250-2266

suggesting ~$30m this year, leading to a ~20x takeout multiple, basically in-line

with MDA's own multiple. BCT is expected to add a minimal amount to capex and

be a tailwind to FCF this year, and be accretive to adjusted EBITDA/EPS in 2027. The

transaction is expected to close in 4Q26, subject to regulatory approvals (likely

CFIUS review), and is fully financed at signing through senior secured debt.

Leverage should remain in the 1.5x-2.5.x range on a PF basis.

For background, BCT was founded in 2008 in Boulder, Colorado and is a satellite bus

and component supplier (star trackers, reaction wheels), focusing on high

performance smallsats mainly for the US government (75% of sales mix is defense).

With more than 85 spacecraft launched and 3,500+ products on orbit, BCT is

particularly well known for high precision/pointing accuracy and low jitter

capabilities; subsystems and components make up 42% of sales mix. RTX originally

acquired Blue Canyon in late 2020 for $426m.

Strategic rationale