Rocket Lab has reached a definitive agreement to acquire Iridium Communications, the U.S.-based satellite communications provider, in a cash-and-stock transaction valued at approximately $8 billion.
Under the terms, the Nasdaq-listed launch and space systems company will purchase all outstanding shares of Iridium common stock for $54 per share. Iridium shareholders will receive $27 in cash per share, with the remainder paid in Rocket Lab shares determined by an exchange ratio subject to a collar ranging from $67.50 to $112.50. The final calculation will be detailed in forthcoming SEC filings.
The transaction, unanimously approved by both companies’ boards, is expected to close in mid-2027, pending Iridium shareholder approval, regulatory clearances, and other customary closing conditions. Iridium’s directors have agreed to vote their shares in favor of the deal.
The combination creates a vertically integrated space enterprise capable of designing, building, launching, and operating satellite constellations. Rocket Lab gains access to Iridium’s global satellite network and a subscriber base exceeding 2.55 million, while Iridium benefits from Rocket Lab’s proven launch and manufacturing capabilities.
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities,” said Iridium CEO Matt Desch. “Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible.”
Rocket Lab founder and CEO Peter Beck called the deal “a defining moment for the space industry and the start of a new era of strategic, accelerated growth.” He added that merging Iridium’s trusted infrastructure and coveted spectrum with Rocket Lab’s launch and manufacturing expertise unlocks entirely new markets.
To fund the cash portion, Rocket Lab has secured a $3.6 billion, 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo, supplemented by cash reserves and other debt and equity sources. Iridium reported $871.7 million in revenue and $495 million in OEBITDA for 2025.