Rocket Lab USA Inc (NASDAQ:RKLB) announced that it has agreed to acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion in a deal that would combine a leading launch and spacecraft manufacturer with an established global satellite communications operator.
Under the terms of the agreement, Iridium shareholders will receive $27 in cash and a portion of Rocket Lab stock for each Iridium share, subject to a collar mechanism tied to Rocket Lab’s share price. The total consideration implies a value of about $54 per Iridium share.
Following the announcement, Rocket Lab shares surged almost 12% to about $94, while Iridium stock jumped 22% to about $53.
The companies said the combination would unite Rocket Lab’s launch services and satellite manufacturing capabilities with Iridium’s low Earth orbit communications network, global spectrum rights and subscriber base. The merged group would operate as a vertically integrated space company spanning launch, spacecraft production and satellite-based communications services.
Iridium operates a LEO constellation supporting more than 2.5 million subscribers across government, maritime, aviation and commercial markets. The company generated $871.7 million in revenue and $495 million in OEBITDA in 2025, according to the announcement.
Rocket Lab said the acquisition would expand its business beyond launch and manufacturing into recurring satellite services, while improving cash flow and profitability. The company also said the deal would eliminate third-party launch costs for future constellation deployment and give it direct access to spectrum and end-user applications, including IoT, direct-to-device connectivity and positioning, navigation and timing services.
Iridium CEO Matt Desch said the deal would help accelerate development of next-generation satellite communications and other space-based applications,
Rocket Lab founder and CEO Sir Peter Beck said the combined company would be positioned to expand into new markets beyond its existing launch and spacecraft manufacturing business.
Under its financing plan, Rocket Lab has secured a $3.6 billion bridge loan commitment from Deutsche Bank and Wells Fargo and intends to fund the remaining cash portion through a mix of balance sheet resources and additional financing.
The transaction is expected to close in mid-2027, pending regulatory approvals and Iridium shareholder consent.