Rocket Lab To Acquire Iridium Communications in $8B Deal

Rocket Lab inked a definitive agreement to acquire Iridium Communications in an approximately $8 billion cash-and-stock transaction that it said would unite the company with one of the industry’s most established satellite communications networks. Unanimously approved by both companies’ boards of directors, the acquisition is expected to close in mid-2027, pending Iridium stockholder approval and regulatory clearance.

The combined entity would span launch services, spacecraft manufacturing, spectrum holdings, and on-orbit communications operations. Iridium brings to the transaction a low-earth-orbit satellite constellation, globally coordinated L-band spectrum, and a subscriber base exceeding 2.55 million users across government, defense, aviation, maritime, and commercial sectors. The company reported $871.7 million in revenue and $495 million in operational EBITDA in 2025, representing a 57% EBITDA margin.

By absorbing Iridium’s constellation replenishment needs, Rocket Lab expects to eliminate third-party launch costs and internalize launch margin while securing guaranteed orbital access for future constellation deployments. The acquisition would also give Rocket Lab a foothold in recurring, service-based revenue, a significant expansion beyond its current launch and satellite manufacturing operations.

Among the near-term opportunities the combined company intends to pursue is growth in satellite Internet of Things (IoT) and direct-to-device services, marketed under the Iridium NTN Direct brand, as well as positioning, navigation, and timing (PNT) services. Iridium’s L-band network is designed to operate in environments where GPS and other global navigation satellite systems are degraded or unavailable.

“By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets,” said Rocket Lab founder and CEO Peter Beck.

Iridium CEO Matt Desch framed the transaction as an opportunity to accelerate next-generation capabilities. “We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities, and pursue new innovative applications as part of Rocket Lab,” he said.

Under the terms of the deal, Iridium stockholders will receive $27 per share in cash plus Rocket Lab common stock, for a combined notional value of $54 per share. Rocket Lab has secured commitments for a $3.6 billion senior secured bridge loan facility from Deutsche Bank and Wells Fargo to fund the cash portion of the transaction, alongside contributions from its balance sheet and other financing sources.