Rocket Lab announces acquisition of Iridium

Rocket Lab and Iridium Communications said June 29, 2026, that they have entered into a definitive agreement under which Rocket Lab will acquire Iridium in a cash-and-stock deal valued at about $8.0 billion in enterprise value.

Under the agreement, Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share. Iridium stockholders will receive $27.00 in cash and a number of shares of Rocket Lab common stock calculated under an exchange ratio that is subject to a collar banded from $67.50 to $112.50.

The companies said the transaction would combine Rocket Lab’s launch and satellite manufacturing operations with Iridium’s satellite communications network, spectrum, and partner ecosystem. They described the deal as one that would create a vertically integrated space company able to design, build, launch, and operate its own constellations.

What the deal would bring together

Rocket Lab said the acquisition would give it an immediate position in space-based applications including proprietary and standards-based satellite Internet of Things (IoT) and direct-to-device (D2D), as well as positioning, navigation, and timing (PNT) and safety-of-life services.

Iridium operates a low Earth orbit satellite network and globally harmonized L-band spectrum. The company said it supports more than 2.55 million active subscribers worldwide and provides voice, data, and PNT services for government, defense, aviation, maritime, and commercial markets.

The companies said combining Rocket Lab’s launch, spacecraft manufacturing, and space systems capabilities with Iridium’s network and spectrum would support development and deployment of Iridium’s next-generation constellation, including direct-to-device services under Iridium NTN DirectSM.

Rocket Lab also said the transaction would strengthen its vertical integration by adding launch, spacecraft, spectrum, and on-orbit communications services through a proprietary network. The company said that structure is expected to eliminate third-party launch costs for constellation deployment and replenishment, capture launch margin internally, and guarantee orbital access as launch capacity tightens.

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Financial terms and timeline

The companies said the transaction is expected to close in mid-2027, subject to customary closing conditions, including approval by Iridium stockholders and required regulatory approvals.

Both companies’ boards unanimously approved the deal. They also said each director of Iridium holding shares of Iridium common stock has entered into a voting agreement to support the transaction.

Rocket Lab said it has received commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo. It said the cash portion of the deal is expected to be funded through a combination of cash on its balance sheet and other debt and equity financing sources.

Iridium reported 2025 revenue of $871.7M and $495M OEBITDA, or a 57% OEBITDA margin, according to figures cited in the announcement.

Executive comments

"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."

"As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities", said Matt Desch, CEO, Iridium. "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."

What the companies say it means

The companies said the combined business would unify two long-standing defense partners and help deliver resilient capabilities in denied, degraded, and disadvantaged environments. They also said the deal would diversify Rocket Lab’s financial profile by adding recurring cash flow streams tied to Iridium’s satellite services business.

If completed, the acquisition would mark Rocket Lab’s expansion beyond launch services and spacecraft manufacturing into a company with recurring revenue from satellite communications and related services.

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