AcquisitionsMay 14, 2026, 07:06 AM
Iridium to Acquire Remaining 61% of Aireon for $366.7M
AI Summary
Iridium Communications Inc. announced a definitive agreement to acquire the remaining 61% equity interest in Aireon Holdings LLC for approximately $366.7 million, which will result in Iridium indirectly owning 100% of Aireon. The purchase price will be paid 50% in cash at closing and 50% deferred as a one-year, interest-free loan from the sellers, with Iridium also assuming $155 million of Aireon's outstanding debt. This acquisition is expected to add at least $100 million in annual service revenue and $30 million in OEBITDA, advancing Iridium's strategy in aviation safety.
Key Highlights
- Iridium to acquire the remaining 61% equity interest in Aireon Holdings LLC.
- Aggregate purchase price is approximately $366.7 million.
- Payment includes 50% cash at closing and 50% deferred as a one-year, interest-free loan.
- Iridium will assume Aireon's outstanding debt of approximately $155 million.
- Acquisition expected to add at least $100 million in annual consolidated service revenue.
- Expected to add at least $30 million in annual consolidated OEBITDA.
- Net leverage projected to increase to approximately 4.0 times OEBITDA during Q3 2026.
- Transaction is targeted to close in early July.