Rocket Lab agrees to acquire Iridium in merger deal

Rocket Lab Corporation and Iridium Communications Inc. said June 29, 2026, that they have entered into a definitive agreement under which Rocket Lab will acquire Iridium in a cash-and-stock transaction valuing Iridium at an enterprise value of approximately $8.0 billion.

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 pursuant to an exchange ratio, subject to a collar banded from $67.50 to $112.50, for each share of Iridium common stock outstanding at closing.

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. The boards of both companies have unanimously approved the deal, and each director of Iridium holding shares of Iridium common stock has entered into a voting agreement to support it.

Combining launch, satellites, and communications services

The planned merger would combine Rocket Lab’s launch and satellite manufacturing operations with Iridium’s satellite communications network, L-band spectrum, and partner ecosystem. The companies said the deal would create a vertically integrated space company that designs, builds, launches, and operates its own constellations.

Rocket Lab said the acquisition would give it immediate access to 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’s network and spectrum serve government, defense, aviation, maritime, and commercial markets, according to the announcement. The company said it supports more than 2.55 million active subscribers worldwide and provides connectivity and an alternative PNT architecture for applications where GPS and other GNSS are degraded or unavailable.

The companies also said the combination would support development and deployment of Iridium’s next-generation constellation, including D2D services under Iridium NTN DirectSM.

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Financial terms and funding

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. The company said it intends to fund the cash portion of the acquisition through a combination of cash from its balance sheet and other debt and equity financing sources.

The announcement said Iridium delivered $871.7M revenue in 2025 and $495M OEBITDA, or a 57% OEBITDA margin.

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."

The companies described the acquisition as one of the most transformative deals in the space industry and said it would unite two long-standing defense partners while expanding Rocket Lab’s business beyond launch services and spacecraft manufacturing into recurring satellite services revenue.

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