Rocket Lab to Acquire Iridium Communications for $8 Billion

Rocket Lab USA Inc. entered into a definitive agreement on June 29, 2026, to acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion. Under the terms, Iridium shareholders will receive $54 per share, consisting of $27 in cash and a portion of Rocket Lab stock. To fund the cash component and settle existing debt, Rocket Lab secured a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo.

The acquisition transforms Rocket Lab from a launch and manufacturing provider into a vertically integrated space communications business. By absorbing Iridium's fleet of 66 low-Earth orbit satellites, globally licensed L-band spectrum, and a base of over 2.5 million subscribers, Rocket Lab aims to bypass the decade-long process of building a constellation from scratch. The company intends to use its upcoming Neutron rocket to grow the constellation and expand into direct-to-device connectivity, satellite Internet of Things, and national security markets.

Leadership from both companies described the merger as a defining moment for the industry. The move positions Rocket Lab as a direct competitor to Space Exploration Technologies' Starlink and Amazon's satellite ambitions. While Iridium was profitable in 2025 with $438.6 million in EBITDA, Rocket Lab reported a net loss of $198.2 million for the same period, reflecting its focus on infrastructure growth. The transaction is expected to close in mid-2027, pending regulatory and shareholder approvals.