Rocket Lab to Acquire Global Satellite Service Iridium

Rocket Lab Corporation, a global leader in launch and space systems and Iridium Communications Inc., a provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, announced they have entered into a definitive agreement under which Rocket Lab will acquire Iridium. Rocket Lab will acquire all the outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction. This represents an enterprise value for Iridium of approximately $8.0 billion.

The acquisition merges Rocket Lab's launch capabilities and satellite manufacturing with Iridium's global satellite communications network, spectrum, and 500-plus strong partner ecosystem.

The transaction will give Rocket Lab an immediate foothold in space-based applications, including both proprietary and standards-based satellite Internet of Things (IoT) and direct-to-device (D2D), PNT, and critical safety-of-life services, creating a formidable challenger in the global telecom market. Rather than simply continuing the Iridium network, Rocket Lab will build upon it to scale into untapped markets and pioneer new space-based services to the benefit of global customers.

• Strengthens Rocket Lab’s Strategic Vertical Integration: Creates an end-to-end space company spanning launch, spacecraft, spectrum, and on-orbit communications services through a proprietary network. Expected to eliminate third-party launch costs for constellation deployment and replenishment and captures launch margin internally while guaranteeing orbital access as launch capacity tightens, ensuring continuity of service to customers.
• Unlocks Entry to Space Applications Market: Provides Rocket Lab with immediate access to a proven constellation of LEO satellites and an established global communications customer base, realizing the company’s long-term strategic vision to expand beyond launch services and spacecraft manufacturing into a vertically-integrated space applications company with recurring revenue from satellite services.
• Provides Access to Globally-Coordinated Spectrum: Adds globally-coordinated L-band spectrum that enables reliable user communications.
• Unifies Two Trusted Government Partners: The transaction combines two deeply trusted, long-standing defense partners, combining their specialized strengths to deliver highly resilient, next-generation capabilities directly to the warfighter across denied, degraded, and disadvantaged environments.
• Accelerates Growth and New Market Opportunities: Positions the combined entity to deliver next-generation satellite communications, resilient PNT, and emerging defense and commercial space services.
• Diversifies Financial Profile with Recurring Cash Flow Streams:  In 2025, Iridium delivered $871.7M revenue¹, $495M OEBITDA[1] or 57% OEBITDA margin¹, providing substantial recurring cash flow to fund growth.

Transaction Details

Under the terms of the transaction, 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) for each share of Iridium common stock outstanding at the closing. The collar is banded from $67.50 to $112.50. The transaction has a notional value of $54.00 per share of Iridium common stock, implying an enterprise value for Iridium of approximately $8.0 billion.

Complete details on the calculation of the exchange ratio will be in the transaction agreement, which will be filed with the Securities and Exchange Commission.

The transaction is expected to be completed in mid-2027, subject to the satisfaction of customary closing conditions, including approval of Iridium stockholders and required regulatory approvals.

The transaction has been unanimously approved by the boards of directors of Iridium and Rocket Lab. Moreover, each director of Iridium holding shares of Iridium common stock has entered into a voting agreement to support the transaction. 

As part of the transaction, Rocket Lab has received commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo. Rocket Lab intends to fund the cash component of the transaction through a combination of cash from its balance sheet and other debt and equity financing sources.

Advisors

Deutsche Bank Securities is serving as lead financial advisor and Wells Fargo and PJT Partners as financial advisors, Wilson Sonsini Goodrich & Rosati, P.C. is serving as legal counsel, Goodwin Procter LLP as financing counsel and DLA Piper LLP as regulatory counsel to Rocket Lab. Evercore is serving as exclusive financial advisor, Davis Polk & Wardwell LLP is serving as legal counsel, Wilkinson Barker Knauer LLP is serving as regulatory counsel, and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications advisor to Iridium. 

Investor Presentation

An investor presentation discussing the transaction is hosted on Rocket Lab’s investor relations website at https://investors.rocketlabcorp.com/