Rocket Lab to Buy Iridium in $8 Billion Cash-and-Stock Deal
The acquisition would create a vertically integrated space company spanning launch, satellite manufacturing, spectrum, and on-orbit communications services.
Rocket Lab Corporation (RKLB) agreed to acquire Iridium Communications Inc. (IRDM) in a cash-and-stock transaction that values the satellite communications operator at an enterprise value of approximately $8.0 billion. Under the terms of the deal, each share of Iridium common stock will be converted into the right to receive $27.00 in cash plus a variable number of Rocket Lab shares, with the exchange ratio determined by a collar mechanism tied to Rocket Lab's volume-weighted average price over a ten-day measurement period.
The exchange ratio is set at 0.4000 if Rocket Lab's stock price is $67.50 or below, 0.2400 if it reaches $112.50 or above, and a formula-based ratio in between. The combined consideration values Iridium at $54 a share. The transaction is expected to close in mid-2027, subject to approval by Iridium stockholders, Hart-Scott-Rodino antitrust clearance, consent from the U.S. Federal Communications Commission, and other regulatory approvals in specified foreign jurisdictions.
The deal would unite Rocket Lab's launch and spacecraft manufacturing capabilities with Iridium's global low-Earth-orbit satellite network, its harmonized L-band spectrum, and a partner ecosystem of more than 500 companies. The combination would create a fully vertically integrated space company that designs, builds, launches, and operates its own constellations, delivering communications capability to millions of users worldwide. The acquisition would eliminate third-party launch costs for constellation deployment and replenishment while capturing launch margin internally.
"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," said Sir Peter Beck, founder and CEO of Rocket Lab. "Iridium has built the gold standard in secure, safety critical global satellite connectivity. It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organizations who operate in the most remote off-the-grid locations. 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".
Iridium operates the world's only truly global mobile satellite network, supporting safety- and mission-critical operations across aviation, maritime, government, emergency services, and autonomous systems. The company ended the second quarter of 2026 with approximately 2,627,000 billable subscribers worldwide, up 6% from a year earlier. Its architecture of 66 operational satellites with in-orbit spares uses interlinked radio-frequency crosslinks to route traffic across the constellation, minimizing reliance on ground infrastructure. In July 2026, Iridium completed its acquisition of the remaining 60.5% of Aireon Holdings, operator of the world's only space-based ADS-B air traffic surveillance system, for approximately $366.7 million.
Matt Desch, CEO of Iridium, said the combination would allow the company to accelerate next-generation capabilities in IoT, aviation, maritime, positioning and timing, and national security. Iridium's board unanimously approved the merger agreement and recommended stockholders vote in favor of the transaction; each director holding shares entered into a voting agreement to support the deal. A termination fee of $223.6 million applies under certain circumstances. The acquisition would be significantly accretive to Rocket Lab's cash flow generation and profitability.