Rocket Lab agreed on 29 June to acquire Iridium Communications for $54 a share in cash and stock, valuing the satellite voice and data operator at about $8.0bn including debt.
Why Rocket Lab Corporation is buying Iridium Communications Inc.
Rocket Lab said owning Iridium's low-Earth-orbit network and globally harmonised L-band spectrum would turn it into a vertically integrated company that designs, builds, launches and operates its own constellations, removing third-party launch costs for replenishment and opening markets in IoT, direct-to-device and resilient positioning and timing services.
Deal terms and financing
Iridium holders receive $27 in cash and Rocket Lab shares under an exchange ratio collared between $67.50 and $112.50. Both boards approved the deal unanimously and Iridium's directors signed voting agreements. Rocket Lab will fund the cash from its balance sheet and other debt and equity, backed by a $3.6bn bridge.
Regulatory approvals and timing
Completion requires Iridium shareholder approval and regulatory clearances and is expected in mid-2027. Rocket Lab filed financing updates in September 2026 and the deal remained pending.
Market context
Iridium's 2025 revenue was $871.7m with a 57% operational EBITDA margin. The offer was about 24% above Iridium's last close before the announcement, Parameter reported.
