Rocket Lab has reached an agreement to acquire Iridium Communications, a US-based satellite communications provider in a cash and stock deal worth approximately $8bn.
The deal will see the Nasdaq-listed Rocket Lab purchase all outstanding shares of Iridium common stock for $54 per share. Iridium is also currently listed on Nasdaq.
Under the terms of the agreement, Iridium shareholders will be paid $27 in cash and issued a number of Rocket Lab shares determined by an exchange ratio, subject to a collar ranging from $67.50 to $112.50.
The final calculation will be detailed in documents to be filed with the Securities and Exchange Commission.
The deal is anticipated to close in mid-2027, pending customary closing conditions, shareholder consents from Iridium, and necessary regulatory approvals.
Both companies’ boards of directors have approved the deal unanimously, and Iridium’s directors holding company shares have agreed to vote in favour of the transaction.
Rocket Lab, active in launch services and space system manufacturing, said the combination with Iridium will create a vertically integrated company.
Iridium operates a global satellite communications network, and together the companies aim to design, build, launch, and operate satellite constellations.
Iridium CEO Matt Desch said: “As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities.
“Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible.”
The move provides Rocket Lab with access to Iridium’s established satellite infrastructure and its base of over 2.55 million active subscribers worldwide.
Rocket Lab founder and CEO Peter Beck said: “This is a defining moment for the space industry and the start of a new era of strategic, accelerated growth for Rocket Lab and Iridium.
“By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets.”
Rocket Lab has secured commitments for a $3.6bn 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo.
The company plans to finance the cash component of the deal through this facility, its own cash reserves, and other debt and equity sources.
Iridium generated $871.7m in revenue and $495m in operational earnings before interest, taxes, depreciation, and amortisation (OEBITDA) for 2025.
Iridium’s low Earth orbit (LEO) satellite network and coordinated L-band spectrum support a range of communications and positioning, navigation, and timing (PNT) services for government, defence, aviation, maritime, and commercial clients.
