Rocket Lab to Acquire Iridium for $8.0B in Cash and Stock Deal
Rocket Lab Corporation announced a definitive agreement to acquire Iridium Communications Inc. for $54 per share in a cash and stock transaction, valuing Iridium at approximately $8.0 billion. This strategic acquisition aims to create a fully vertically integrated space powerhouse by combining Rocket Lab's launch and satellite manufacturing capabilities with Iridium's global satellite communications network and L-band spectrum. The transaction is expected to be significantly accretive to Rocket Lab's cash flow and profitability, providing immediate entry into the space applications market and diversifying its financial profile with recurring revenue streams. The deal is anticipated to close in mid-2027, pending regulatory and Iridium stockholder approvals.
Key Highlights
- Rocket Lab to acquire Iridium Communications Inc. for $54 per share.
- The transaction implies an enterprise value of approximately $8.0 billion for Iridium.
- Iridium stockholders will receive $27.00 in cash and Rocket Lab common stock per share.
- The acquisition aims to create a vertically integrated space company, combining launch, satellite manufacturing, and global network services.
- Iridium's 2025 revenue was $871.7 million, with OEBITDA of $495 million (57% margin).
- The deal is expected to be completed in mid-2027, subject to regulatory and stockholder approvals.
- Rocket Lab secured commitments for a $3.6 billion senior secured bridge term loan facility.
- Iridium's board of directors unanimously approved the Merger Agreement and recommends stockholder approval.
Price Impact
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