Rocket Lab to acquire Iridium for $8 billion

TL;DR: Rocket Lab signed an agreement to acquire Iridium Communications in a transaction valued at $8 billion. Rocket Lab said it will pay $57 per share in a cash-and-stock deal. The companies expect to close the transaction in mid-2027, subject to customary closing conditions and regulatory approval.

Rocket Lab signed an agreement to acquire Iridium Communications for $8 billion, according to a report published by Mobile World Live. Rocket Lab said it will pay $57 per share, or about €52.5, in a mixed cash-and-stock transaction that values Iridium at an enterprise value of $8 billion, or about €7.35 billion.

Rocket Lab said the deal will combine its launch capability and satellite manufacturing business with Iridium’s global satellite communications network and spectrum assets. Rocket Lab also said it will add Iridium’s partner ecosystem of more than 500 companies.

The companies said the combined business will be a vertically integrated space company that designs, builds, launches, and operates its own constellations, and will provide communications capacity to millions of users worldwide. Rocket Lab said the acquisition gives it immediate access to space applications including proprietary and standards-based satellite IoT services, direct-to-device connectivity, and communications services used for safety-critical purposes.

The transaction is subject to customary closing conditions and regulatory approval, and the companies expect it to close in mid-2027. Rocket Lab said it plans to build on Iridium’s existing network to expand into untapped markets and develop new space services for customers worldwide.

Related questions

• How much is Rocket Lab paying to acquire Iridium?
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• What assets does Rocket Lab gain from acquiring Iridium?