Rocket Lab Adds Iridium Network To Its Launch Business

Rocket Lab has agreed to acquire Iridium Communications in a cash-and-stock transaction worth about $8bn, moving the launch and space-systems company toward ownership of an operating satellite communications network.

The agreement values Iridium common stock at $54 per share.

Iridium shareholders would receive $27 in cash and Rocket Lab shares calculated through an exchange ratio with a collar from $67.50 to $112.50.

Rocket Lab and Iridium expect the transaction to close in mid-2027.

The deal still needs customary closing conditions, Iridium shareholder consent and regulatory approvals.

Both boards have approved the transaction unanimously, and Iridium directors holding shares have agreed to vote in favour.

Bridge Loan Covers The Cash Component

Deutsche Bank and Wells Fargo have committed a $3.6bn bridge facility with a 364-day term for Rocket Lab.

The company plans to combine that financing with cash reserves and other debt and equity sources for the cash portion of the acquisition.

Iridium gives Rocket Lab an operating communications base rather than only a launch and manufacturing pipeline.

The company operates a low Earth orbit satellite network and coordinated L-band spectrum for communications and positioning, navigation and timing services.

The disclosed customer categories include government, defence, aviation, maritime and commercial clients.

Iridium had more than 2.55 million active subscribers worldwide, according to the deal announcement.

Subscriber Revenue Becomes Part Of The Space Plan

For 2025, Iridium disclosed $871.7m of revenue and $495m in operational earnings before interest, taxes, depreciation and amortisation.

That services base would sit beside Rocket Lab's launch-services and space-system manufacturing businesses if regulators and shareholders approve the acquisition.

The planned combination is pitched around a wider operating chain.

Rocket Lab would bring launch and manufacturing, while Iridium would add a working satellite network, coordinated spectrum and existing subscribers.

The companies say the combined group could design, build, launch and operate satellite constellations.

Rocket Lab founder and CEO Peter Beck said the companies would combine Iridium's infrastructure and spectrum with Rocket Lab's launch and manufacturing capabilities.

Iridium CEO Matt Desch said more critical services will depend on space-based capabilities as space and terrestrial communications converge.

The final exchange-ratio calculation is still due in documents to be filed with the Securities and Exchange Commission.

The companies did not disclose a final exchange ratio, named new constellation customers or the regulatory approval timetable beyond the planned mid-2027 close.