MDA Space to Acquire Blue Canyon for $620M after Goldman Sachs Neutral Rating
Goldman Sachs initiated coverage of MDA Space with a Neutral rating and MDA Space will acquire Blue Canyon Technologies from RTX for approximately US$620 million. The deal is expected to be accretive to adjusted EBITDA and EPS by 2027 and add US$3.50 billion to its project pipeline.
1. Coverage Initiation
Goldman Sachs has initiated coverage of MDA Space with a Neutral rating, marking the first major broker assessment for the Canadian space technology specialist and noting the stock at US$33.66.
2. Acquisition Details
MDA Space has agreed to acquire Blue Canyon Technologies from RTX in an all-cash transaction valued at approximately US$620 million, securing a US-based manufacturer of spacecraft and satellite components to strengthen its presence in U.S. government and defense markets.
3. Financial Outlook
The transaction is projected to be accretive to MDA Space’s adjusted EBITDA and adjusted EPS by 2027 and is expected to add about US$3.50 billion to its project pipeline, boosting long-term revenue potential.
4. Market Reaction and Valuation
On the announcement day, MDA Space shares rose by US$1.78, or 5.58%, trading within a 52-week range of US$15.00 to US$35.35 and reflecting a market capitalization near US$4.26 billion.
