Mentioned:
MDA Space is putting up hundreds of millions of dollars to buy a company from Raytheon. But, why?
What’s happening:
- MDA Space (NYSE: MDA) has entered into a new deal to acquire Blue Canyon for $620M USD in an all cash deal
Why it matters:
- Blue Canyon is a a small spacecraft manufacturer and satellite component supplier who has existing contracts with NASA, the Air Force Research Laboratory and the Johns Hopkins Applied Physics Laboratory
Going deeper:
- MDA Space has publicly stated that their acquisition of Blue Canyon will provide them with a profitable business and meaningfully expand their capabilities for landing new contracts from the United States government agencies and defense customers
- Blue Canyon is currently a wholly owned subsidiary of Raytheon (NYSE: RTX) after Raytheon previously acquired them more than five years ago
The intrigue:
- MDA Space previously made waves on Wall Street when they raised $300M USD in an equity financing round and began trading on the New York Stock Exchange
