Rocket Lab Agrees to Acquire Iridium in $8 Billion Deal
Combined Company Would Control Launch, Manufacturing, Spectrum, and a 2.55-Million-Subscriber Global Network
Rocket Lab Corporation has agreed to acquire Iridium Communications Inc. in a cash-and-stock transaction valued at $54 per share, implying an enterprise value of approximately $8.0 billion for Iridium.
“We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities.”
Sir Peter Beck, Rocket Lab
Under the terms of the deal announced June 29, Iridium stockholders will receive $27.00 in cash plus Rocket Lab common stock for each share they hold. The stock exchange ratio is subject to a collar banded between $67.50 and $112.50. The boards of both companies unanimously approved the transaction, and each Iridium director holding shares has signed a voting agreement in support.
The deal is expected to close in mid-2027, pending Iridium stockholder approval and regulatory clearances.
To fund the cash component, Rocket Lab has secured commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo. The company said it intends to supplement that with cash from its balance sheet and additional debt and equity financing.
Iridium operates a LEO satellite constellation supporting more than 2.55 million active subscribers across government, defense, aviation, maritime, and commercial markets. The company holds globally coordinated L-band spectrum and provides voice, data, positioning, navigation, and timing services, including an alternative PNT architecture for environments where GPS and other GNSS signals are degraded or unavailable. In 2025, Iridium reported revenue of $871.7 million and operational EBITDA of $495 million, a 57% OEBITDA margin.
Rocket Lab brings to the combination its Electron small launch vehicle, the in-development Neutron medium-lift rocket, and a satellite manufacturing business that has produced spacecraft for government and commercial customers.
“We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers,” said Sir Peter Beck, founder and CEO of Rocket Lab.
“Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible,” said Matt Desch, CEO of Iridium. “We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities.”
Among the stated priorities for the combined company are direct-to-device services marketed under the Iridium NTN Direct brand, next-generation constellation development, and defense applications in denied or degraded communications environments.
The transaction will be filed with the Securities and Exchange Commission. Deutsche Bank Securities is lead financial advisor to Rocket Lab; Wells Fargo and PJT Partners are also advising. Wilson Sonsini Goodrich & Rosati, P.C. serves as legal counsel to Rocket Lab. Evercore is exclusive financial advisor to Iridium; Davis Polk & Wardwell LLP is legal counsel.
An investor presentation is available at https://investors.rocketlabcorp.com/