Rocket Lab to acquire Iridium in $8bn deal
Iridium shareholders will receive $27 per share in cash and Rocket Lab stock at a notional value of $54 per share.
Rocket Lab has agreed to acquire satellite communications provider Iridium in an $8bn cash and stock transaction, combining launch and spacecraft manufacturing.
Under the terms of the deal, Iridium shareholders will receive $27 per share in cash and Rocket Lab stock at a notional value of $54 per share. The transaction is expected to close in mid-2027, subject to regulatory and shareholder approvals. It has been unanimously approved by both companies’ boards.
The acquisition merges Rocket Lab’s launch and satellite manufacturing operations with Iridium’s low earth orbit (LEO) network, globally coordinated L-band spectrum and more than 2.55 million active subscribers across aviation, maritime, government and defence markets. Rocket Lab said the deal eliminates third-party launch costs for future constellation deployment by bringing those capabilities in-house.
“Iridium has built the gold standard in secure, safety critical global satellite connectivity. 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,” said Sir Peter Beck, founder and CEO of Rocket Lab.
“We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities, and pursue new innovative applications as part of Rocket Lab – a fully integrated, end-to-end space company,” said Matt Desch, CEO of Iridium.
Iridium generated $871.7m in revenue and $495m in operating EBITDA in 2025, providing a recurring cash flow base to fund future growth. Rocket Lab has secured a $3.6bn bridge loan from Deutsche Bank and Wells Fargo to fund the cash component of the transaction.
The combined company will be positioned to expand into direct-to-device satellite services, resilient positioning and navigation alternatives to GPS, and next-generation defence communications.
