June 19 (Reuters) - Canadian space technology firm MDA Space ( MDA )

said on Friday it would buy U.S.-based Blue Canyon

Technologies from RTX's Raytheon business for $620

million in cash, expanding its footprint in the U.S. defense

space market.

The acquisition comes as governments increase spending on

defense and space programs, providing opportunities for

suppliers of satellites, spacecraft and related technologies.

It also follows the Nasdaq debut of SpaceX last

week, with the firm raising $75 billion in its IPO.

MDA Space ( MDA ) said the acquisition would bring Blue Canyon's

spacecraft manufacturing capabilities, two facilities in Denver,

Colorado and more than 400 employees.

The deal is expected to close by the end of 2026, subject to

regulatory approvals and customary closing conditions.

Founded in 2008, Colorado-based Blue Canyon designs and

builds small satellites, spacecraft buses and mission systems

for commercial, civil, defense customers. It was acquired by RTX

in 2020.

The business would add about $3.5 billion to MDA Space's ( MDA )

opportunity pipeline and is expected to be accretive to adjusted

EBITDA and adjusted earnings per share in 2027, the Canadian

firm said.