Rocket Lab Corp., Long Beach, Calif., said Monday it has agreed to acquire Iridium Communications Inc., McLean, Va., in a cash-and-stock deal valuing the satellite communications provider at approximately $8 billion in enterprise value.
Under the terms of the agreement, Iridium shareholders will receive $27.00 in cash plus shares of Rocket Lab common stock calculated under an exchange ratio subject to a collar banded between $67.50 and $112.50, for a total notional value of $54.00 per Iridium share.
The deal combines Rocket Lab's launch and satellite manufacturing operations with Iridium's low Earth orbit satellite network, which supports more than 2.55 million active subscribers, including maritime fleets. Iridium's network relies on globally harmonized L-band spectrum and provides positioning, navigation, and timing (PNT) services as an alternative when GPS and other satellite navigation systems are degraded or unavailable.
Rocket Lab said the acquisition would give it an immediate foothold in satellite Internet of Things (IoT) and direct-to-device services, PNT, and safety-of-life communications, while eliminating third-party launch costs for deploying and replenishing Iridium's constellation.
"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. It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organizations who operate in the most remote off-the-grid locations. 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. We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers."
Iridium CEO Matt Desch said the deal would let the company move faster in bringing new capabilities to market. "As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities," Desch said. "Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible. We're excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities, and pursue new innovative applications as part of Rocket Lab — a fully integrated, end-to-end space company. That's an incredible opportunity for our customers, partners, employees, and stockholders."
According to the companies, Iridium generated $871.7 million in revenue and $495 million in operating EBITDA, a 57% margin, in 2025. Rocket Lab said the acquisition is expected to be significantly accretive to its cash flow generation and profitability.
The boards of both companies have unanimously approved the transaction, and each Iridium director holding company stock has signed a voting agreement in support of the deal. Rocket Lab has secured commitments for a $3.6 billion, 364-day senior secured bridge term loan from Deutsche Bank and Wells Fargo, and said it intends to fund the cash portion of the deal through balance sheet cash and additional debt and equity financing.
The transaction is expected to close in mid-2027, pending approval by Iridium shareholders and regulatory clearances.
Deutsche Bank Securities is serving as lead financial advisor to Rocket Lab, with Wells Fargo and PJT Partners also advising. Wilson Sonsini Goodrich & Rosati is legal counsel, Goodwin Procter is financing counsel, and DLA Piper is regulatory counsel to Rocket Lab. Evercore is serving as exclusive financial advisor to Iridium, with Davis Polk & Wardwell as legal counsel and Wilkinson Barker Knauer as regulatory counsel. Joele Frank, Wilkinson Brimmer Katcher is Iridium's strategic communications advisor.
