Rocket Lab to Buy Iridium in $8 Billion Mixed Deal
The acquisition unites Rocket Lab’s launch and satellite manufacturing with Iridium’s global network and spectrum to create a vertically integrated space powerhouse.
**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 the companies called one of the most transformative in the space industry. The transaction would create a fully vertically integrated space company spanning launch, satellite manufacturing, spectrum, and on-orbit communications services.
Under the terms of the agreement, Iridium stockholders will receive $27.00 in cash and a number of Rocket Lab common shares calculated pursuant to an exchange ratio, subject to a collar banded from $67.50 to $112.50. The notional value of $54.00 per Iridium share reflects the enterprise value of $8.0 billion. The transaction is expected to close in mid-2027, pending approval by Iridium stockholders and regulatory clearances.
Rocket Lab said the acquisition would eliminate third-party launch costs for constellation deployment and replenishment, capturing launch margin internally while guaranteeing orbital access as launch capacity tightens. "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. 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 to more than 2.55 million active subscribers across aviation, maritime, government, and emergency services. Its low Earth orbit (LEO) constellation and globally harmonized L-band spectrum provide resilient connectivity in remote or harsh conditions where traditional networks are unavailable or compromised. The acquisition would give Rocket Lab immediate access to Iridium’s established customer base and recurring revenue streams, including $871.7 million in revenue and $495 million in operational EBITDA in 2025.
The deal follows a strategic playbook seen in other space-sector consolidations, where vertically integrated players seek to control the full stack from manufacturing to orbit. By combining Rocket Lab’s launch and satellite capabilities with Iridium’s spectrum and network, the combined company aims to accelerate the deployment of next-generation services, including direct-to-device (D2D) communications and resilient PNT for national security applications.
Regulatory approvals and Iridium stockholder votes are key conditions 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 component of the transaction. The company said the deal would diversify its financial profile with recurring cash flow streams and position it to compete in new markets with large addressable opportunities.