Rocket Lab to Acquire Iridium Communications for $8 Billion

Rocket Lab USA Inc. entered into a definitive agreement 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—representing a 24 percent premium over the previous close. 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 spacecraft manufacturer into a vertically integrated space services company. By absorbing Iridium's fleet of 66 low-Earth orbit satellites, its global L-band spectrum rights, and a subscriber base of over 2.5 million, Rocket Lab aims to bypass the long lead times associated with building a satellite network from scratch. The company intends to use its upcoming Neutron rocket to expand the constellation and enter the direct-to-device, IoT, and national security markets.

This strategic shift moves Rocket Lab into direct competition with SpaceX's 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 heavy investment in growth and infrastructure. The deal has been unanimously approved by both boards and is expected to close in mid-2027, pending regulatory and shareholder approvals.