The cash-and-stock deal gives Rocket Lab a global satellite network, licensed spectrum, and 2.55 million subscribers
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Rocket Lab agreed to acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion, the companies announced Monday. The deal would give Rocket Lab control over Iridium's 66-satellite low-Earth orbit network, globally licensed L-band spectrum, and a customer base of more than 2.55 million subscribers spanning government, defense, aviation, maritime, and commercial markets.
Each Iridium share is valued at $54 under the deal's structure — half in cash and half in Rocket Lab stock — representing a 24.1% premium over where Iridium last traded, according to Reuters. The transaction is expected to close in mid-2027, pending Iridium stockholder and regulatory approvals. Both companies' boards unanimously approved the deal.
The acquisition positions Rocket Lab to compete more directly with SpaceX and its Starlink unit, which combines launch services with a satellite communications business. Like SpaceX's Starlink model, the logic behind the acquisition centers on folding a working satellite communications network into a company that already builds and launches the vehicles that put those satellites in orbit, according to the outlet. Several other longstanding satellite operators have also sought merger partners recently, according to The Wall Street Journal, including Globalstar, which agreed to be acquired by Amazon $AMZN in April, and SES, which completed its purchase of Intelsat last year.
Without Iridium, Rocket Lab would have faced what it described as three major barriers to entering satellite communications on its own — securing spectrum access, waiting out the lengthy gap between infrastructure deployment and actual revenue, and spending years cultivating a paying subscriber base. Iridium reported $871.7 million in revenue and $495 million in operational EBITDA in 2025, the company said. The combined entity is expected to eliminate third-party launch costs by using Rocket Lab's own vehicles to deploy and replenish the constellation.
"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," Rocket Lab founder and CEO Sir Peter Beck said in a statement.
To cover the cash component of the transaction, Deutsche Bank and Wells Fargo $WFC have committed to a $3.6 billion bridge loan, with the remainder of financing to be drawn from existing cash reserves along with future debt and equity arrangements, the company said.
Rocket Lab has been building out its spacecraft manufacturing and components business through a series of acquisitions in recent years. The company posted record first-quarter revenue of $200.3 million, a 63.5% increase from the year-ago period, and ended the quarter with a backlog of $2.2 billion. Rocket Lab stock joined the Nasdaq $NDAQ-100 Index earlier this month.
In premarket trading Monday, Iridium shares surged roughly 22% on the news, while Rocket Lab's own stock climbed 12%.
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