Rocket Lab to acquire Iridium for about $8 billion in cash-and-stock deal

Rocket Lab (Nasdaq: RKLB) and Iridium Communications (Nasdaq: IRDM) have entered a definitive agreement under which Rocket Lab will acquire Iridium. Rocket Lab will buy all outstanding Iridium common stock for $54 per share in a cash-and-stock transaction, implying an enterprise value of approximately $8.0 billion.

Deal terms

Under the terms announced on June 29, 2026, Iridium stockholders will receive $27.00 in cash plus a number of Rocket Lab shares calculated from an exchange ratio that is subject to a collar banded from $67.50 to $112.50. Both boards of directors unanimously approved the transaction, and every Iridium director holding shares has signed a voting agreement in support. The deal is expected to close in mid-2027, subject to Iridium stockholder approval and required regulatory clearances. Rocket Lab has received commitments for a $3.6 billion, 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo, and intends to fund the cash portion from its balance sheet together with other debt and equity financing sources.

What Rocket Lab is buying

The combination merges Rocket Lab's launch and spacecraft manufacturing business with Iridium's global satellite communications network, its L-band spectrum and an ecosystem of more than 500 partners. Iridium's low Earth orbit network supports more than 2.55 million active subscribers and provides voice, data and positioning, navigation and timing (PNT) services for government, defense, aviation, maritime and commercial customers. Rocket Lab says it intends to build on the network rather than simply maintain it, targeting satellite Internet of Things (IoT), direct-to-device services and resilient PNT applications. Iridium reported $871.7 million of revenue in 2025 and $495 million of operational EBITDA, a 57 percent margin, which the companies describe as substantial recurring cash flow to fund growth.

What the executives say

Sir Peter Beck, founder and CEO of Rocket Lab, called the transaction a defining moment for the space industry and the start of a new era of accelerated growth, saying Iridium's infrastructure and sought-after spectrum would open entirely new markets when paired with Rocket Lab's launch and manufacturing capacity. Iridium CEO Matt Desch said space and terrestrial communications are converging and that success will come from companies able to bring innovations to space quickly and sustain them efficiently. Deutsche Bank Securities is lead financial advisor to Rocket Lab, while Evercore is exclusive financial advisor to Iridium. Both companies trade on Nasdaq: Rocket Lab under RKLB and Iridium under IRDM.