Rocket Lab and Iridium Communications announced that they have entered into a definitive agreement under which Rocket Lab will acquire Iridium in a cash-and-stock transaction. The deal represents an enterprise value for Iridium of approximately $8 billion.
Under the terms of the agreement, Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share. Iridium stockholders will receive $27 in cash and a number of Rocket Lab common shares calculated based on an exchange ratio, subject to a collar banded from $67.50 to $112.50.
This transaction would combine Rocket Lab’s launch and satellite manufacturing capabilities with Iridium’s global satellite communications network, spectrum, and partner ecosystem. The companies said the combination would create a fully vertically integrated space company that designs, builds, launches, and operates its own constellations while delivering communications services to millions of users worldwide.
Iridium operates a global L-band low Earth orbit satellite network that supports voice, data, positioning, navigation, and timing services across government, defense, aviation, maritime, commercial, and other markets. The company has more than 2.55 million active subscribers and a partner ecosystem of more than 500 companies.
For Rocket Lab, the deal adds an immediate position in space-based applications, including satellite Internet of Things, direct-to-device services, positioning, navigation, timing, and safety-of-life services. The company plans to build on Iridium’s existing network to expand into new markets and support next-generation space-based services.
The companies also said the combination would support the development and deployment of Iridium’s next-generation constellation, including direct-to-device services through Iridium NTN Direct. These capabilities are expected to be important for national security, emergency response, and communications in areas where traditional networks are unavailable or compromised.
Rocket Lab said the deal strengthens its strategic vertical integration by combining launch, spacecraft, spectrum, and on-orbit communications services through a proprietary network. The company expects the transaction to eliminate third-party launch costs for constellation deployment and replenishment, capture launch margin internally, and provide guaranteed orbital access as launch capacity tightens.
The acquisition also diversifies Rocket Lab’s financial profile by adding recurring cash flow from Iridium’s satellite services business. In 2025, Iridium generated $871.7 million in revenue and $495 million in operational EBITDA, representing a 57% operational EBITDA margin.
The transaction has been unanimously approved by the boards of directors of both companies. Each Iridium director holding shares of Iridium common stock has entered into a voting agreement to support the transaction.
The deal is expected to close in mid-2027, subject to Iridium stockholder approval, required regulatory approvals, and other customary closing conditions.
Rocket Lab has received commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo. The company expects to fund the cash portion of the deal through a combination of balance sheet cash and other debt and equity financing sources.
Deutsche Bank Securities is serving as lead financial advisor to Rocket Lab, with Wells Fargo and PJT Partners also serving as financial advisors. Wilson Sonsini Goodrich & Rosati is serving as legal counsel, Goodwin Procter is serving as financing counsel, and DLA Piper is serving as regulatory counsel to Rocket Lab.
Evercore is serving as exclusive financial advisor to Iridium. Davis Polk & Wardwell is serving as legal counsel, Wilkinson Barker Knauer is serving as regulatory counsel, and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor.
KEY QUOTES:
“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. 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.”
Sir Peter Beck, Founder and CEO of Rocket Lab
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities. 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.”
Matt Desch, CEO of Iridium
