Rocket Lab to buy Iridium in $8 billion deal

Rocket Lab Corporation has entered into a definitive agreement to acquire Iridium Communications Inc. in a cash-and-stock transaction valuing Iridium at approximately $8.0 billion. The deal assigns a notional value of $54.00 per Iridium share and has been unanimously approved by the boards of directors of both companies.

Under the terms of the agreement, all outstanding shares of Iridium common stock will be acquired by Rocket Lab. The transaction is structured to provide Iridium shareholders with both immediate cash value and ongoing participation in the combined company through Rocket Lab equity.

Iridium stockholders will receive $27.00 in cash for each share they hold, plus a number of Rocket Lab common shares determined by an exchange ratio. The stock component is subject to a collar banded between $67.50 and $112.50 for Rocket Lab’s share price, designed to support the notional $54.00 per Iridium share value.

This structure combines fixed cash with variable equity consideration, linking part of the deal value to Rocket Lab’s share performance at closing. The implied premium to Iridium’s prior share price has been reflected in a sharp move higher in Iridium’s stock following the announcement.

To support the cash portion of the acquisition, Rocket Lab has obtained commitments for a $3.6 billion, 364-day senior secured bridge term loan facility from Deutsche Bank (DBKd) and Wells Fargo (WFC). The company plans to use this facility alongside cash on hand and other potential debt and equity financing sources.

The transaction is expected to close in mid-2027, subject to customary closing conditions. These include approval by Iridium stockholders, required regulatory clearances such as FCC consent and antitrust or foreign approvals, and the effectiveness of a Form S-4 registration statement.

The deal would combine Rocket Lab’s launch and satellite-manufacturing operations with Iridium’s established low Earth orbit communications network. Iridium operates a global L-band satellite system supported by licensed spectrum and a large installed base of users.

Iridium reported 2025 revenue of $871.7 million and operational EBITDA of $495 million, underpinned by more than 2.55 million active subscribers. These recurring communications services complement Rocket Lab’s existing space infrastructure capabilities and add scale on the services side of the business.

Following the announcement of the agreement, Iridium shares jumped by roughly 20 percent as investors priced in the acquisition premium and mixed cash-and-stock consideration. Rocket Lab’s shares also rose, reflecting investor reception to the planned expansion into a broader space-based communications platform.

The market response highlights expectations around the potential benefits of integrating an operational satellite communications network with a launch and manufacturing provider, as both companies move toward closing the transaction over the coming years.