Rocket Lab to acquire Iridium in $8B cash-and-stock deal

Rocket Lab USA Inc (NASDAQ:RKLB) announced that it has agreed to get Iridium Communications successful a cash-and-stock transaction valued astatine astir $8 cardinal successful a woody that would harvester a starring motorboat and spacecraft shaper with an established planetary outer communications operator.

Under the presumption of the agreement, Iridium shareholders volition person $27 successful currency and a information of Rocket Lab banal for each Iridium share, taxable to a collar mechanics tied to Rocket Lab's stock price. The full information implies a worth of astir $54 per Iridium share.

Following the announcement, Rocket Lab shares surged astir 12% to astir $94, portion Iridium banal jumped 22% to astir $53.

The companies said the operation would unite Rocket Lab's motorboat services and outer manufacturing capabilities with Iridium's debased Earth orbit communications network, planetary spectrum rights and subscriber base. The merged radical would run arsenic a vertically integrated abstraction institution spanning launch, spacecraft accumulation and satellite-based communications services.

Iridium operates a LEO constellation supporting much than 2.5 cardinal subscribers crossed government, maritime, aviation and commercialized markets. The institution generated $871.7 cardinal successful gross and $495 cardinal successful OEBITDA successful 2025, according to the announcement.

Rocket Lab said the acquisition would grow its concern beyond motorboat and manufacturing into recurring outer services, portion improving currency travel and profitability. The institution besides said the woody would destruct third-party motorboat costs for aboriginal constellation deployment and springiness it nonstop entree to spectrum and end-user applications, including IoT, direct-to-device connectivity and positioning, navigation and timing services.

Iridium CEO Matt Desch said the woody would assistance accelerate improvement of next-generation outer communications and different space-based applications,

Rocket Lab laminitis and CEO Sir Peter Beck said the combined institution would beryllium positioned to grow into caller markets beyond its existing motorboat and spacecraft manufacturing business.

Under its financing plan, Rocket Lab has secured a $3.6 cardinal span indebtedness committedness from Deutsche Bank and Wells Fargo and intends to money the remaining currency information done a premix of equilibrium expanse resources and further financing.

The transaction is expected to adjacent successful mid-2027, pending regulatory approvals and Iridium shareholder consent.