Rocket Lab to Buy Iridium in $8 Billion Mixed Deal
The transaction unites Rocket Lab’s launch and satellite manufacturing with Iridium’s global network and spectrum to create a vertically integrated space company.
**Rocket Lab Corporation (RKLB) agreed to acquire Iridium Communications Inc. (IRDM) in a transaction valued at approximately $8.0 billion**, combining cash and stock in a deal that would create a vertically integrated space company spanning launch, satellite manufacturing, and on-orbit communications services.
Under the terms of the agreement, Iridium stockholders will receive $27.00 in cash and a variable number of Rocket Lab shares for each share of Iridium common stock, subject to a collar mechanism that sets the exchange ratio within a band of $67.50 to $112.50 per Rocket Lab share. The transaction values Iridium at a notional $54.00 per share, with closing expected in mid-2027 pending customary regulatory and shareholder approvals.
Rocket Lab framed the acquisition as a transformative step to unlock critical space applications, citing Iridium’s global satellite network, L-band spectrum, and 2.55 million active subscribers as foundational assets. "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. "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, delivering voice, data, and positioning, navigation, and timing (PNT) services across aviation, maritime, government, and emergency response sectors. The company’s low Earth orbit (LEO) constellation and globally harmonized spectrum provide resilient connectivity in environments where traditional networks are unavailable or compromised, supporting safety- and mission-critical operations. In 2025, Iridium reported $871.7 million in revenue and $495 million in operational EBITDA, or a 57% margin, underscoring its cash-flow generation.
The deal follows a strategic playbook in the space sector, where vertical integration has become a competitive imperative. By combining Rocket Lab’s launch and satellite manufacturing with Iridium’s operational network, the transaction mirrors industry efforts to control the full lifecycle of space-based services, from deployment to end-user delivery. The acquisition is expected to eliminate third-party launch costs for constellation replenishment while capturing internal launch margins, a key advantage as orbital access tightens.
Regulatory approvals and Iridium shareholder consent remain prerequisites for closing. Rocket Lab has secured a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo to fund the cash portion of the transaction, with additional financing expected from its balance sheet and other debt and equity sources. The boards of both companies have unanimously approved the deal, and Iridium directors holding shares have entered into voting agreements to support the transaction.