Rocket Lab to Buy Iridium in $8 Billion Mixed-Cash Deal
The acquisition vertically integrates Rocket Lab's launch and satellite manufacturing with Iridium's global communications network and L-band spectrum.
Rocket Lab Corporation (RKLB) agreed to acquire Iridium Communications Inc. (IRDM) in a transaction with a notional value of $54.00 per share. The deal, which implies an enterprise value for Iridium of approximately $8.0 billion, is structured as a mixed cash-and-stock transaction.
Under the terms of the agreement, Iridium stockholders will receive $27.00 in cash and a number of shares of Rocket Lab common stock based on an exchange ratio. This ratio is subject to a collar banded between $67.50 and $112.50, based on the 10-day volume-weighted average price of Rocket Lab shares prior to the closing. The companies expect to complete the transaction in mid-2027.
The merger creates a vertically integrated space company capable of designing, building, launching, and operating its own constellations. The move provides Rocket Lab with immediate access to a proven low Earth orbit (LEO) satellite constellation and recurring revenue from satellite services.
“We believe vertically integrating with Rocket Lab’s industry leading launch and satellite capabilities will allow the combined company to realize even greater ambitions to solve important connectivity challenges around the world,” said Matt Desch, CEO of Iridium.
Iridium operates a global mobile satellite network consisting of 66 operational satellites and related ground infrastructure. The company provides voice and data communications to commercial end users, non-governmental organizations, and government entities, including the U.S. Space Force. As of June 30, 2026, Iridium reported approximately 2.6 million billable subscribers worldwide.
To fund the cash portion of the acquisition, Rocket Lab has received commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Wells Fargo and Deutsche Bank.
The deal remains subject to customary closing conditions, including approval by Iridium stockholders and regulatory clearances from the U.S. Federal Communications Commission and the Hart-Scott-Rodino Antitrust Improvements Act. The agreement includes a $223.6 million termination fee payable under certain circumstances.