MergerJun 29, 2026, 08:17 AM
Rocket Lab to Acquire Iridium for $8.0B in Cash & Stock
AI Summary
Rocket Lab Corporation announced a definitive agreement to acquire Iridium Communications Inc. for approximately $8.0 billion in a cash and stock transaction. Iridium stockholders will receive $54.00 per share, comprising $27.00 in cash and a variable number of Rocket Lab shares. This strategic merger aims to create a fully vertically integrated space company, combining Rocket Lab's launch and satellite manufacturing capabilities with Iridium's global satellite communications network and spectrum. The deal is expected to add significant revenue scale, be accretive to Rocket Lab's cash flow and profitability, and is anticipated to close in mid-2027.
Key Highlights
- Rocket Lab to acquire Iridium Communications Inc. for an enterprise value of approximately $8.0 billion.
- Iridium stockholders will receive $54.00 per share ($27.00 cash and Rocket Lab common stock).
- The transaction aims to create a fully vertically integrated space company.
- Iridium reported $871.7 million in revenue and $495 million in OEBITDA for 2025.
- The acquisition is expected to be materially accretive to Rocket Lab's cash flow and profitability.
- Rocket Lab secured commitments for a $3.6 billion senior secured bridge term loan facility.
- The transaction is expected to be completed in mid-2027, subject to customary closing conditions.
Price Impact
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