Rocket Lab to Buy Iridium for About $8 Billion, Adding Global Satellite Network

Rocket Lab has agreed to acquire Iridium Communications in an $8 billion cash-and-stock deal, a move that would take the company deeper into satellite communications by giving it direct ownership of a global satellite network alongside its launch and spacecraft businesses.

The companies said Monday they entered into a definitive merger agreement dated June 28 under which Rocket Lab will buy Iridium for a notional value of $54 per share, implying an enterprise value of about $8 billion. Iridium shareholders would receive $27 a share in cash plus Rocket Lab stock, with the share portion subject to an exchange-ratio collar tied to Rocket Lab’s stock price. Both companies said their boards unanimously approved the transaction.

Rocket Lab said it has commitments for a $3.6 billion, 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo to fund the cash portion of the deal, and that it also plans to use its balance sheet and other debt or equity financing.

Strategically, the acquisition would expand Rocket Lab beyond launch and satellite manufacturing into ownership of a global low-Earth-orbit communications network with licensed L-band spectrum, positioning, navigation and timing services, a government business and about 2.55 million subscribers. The companies said the combination would create a “fully vertically-integrated” space company, bringing together Rocket Lab’s rockets, spacecraft and manufacturing operations with Iridium’s communications infrastructure and recurring service revenue.

That recurring business is a large part of what Rocket Lab is buying. McLean, Virginia-based Iridium, which operates a global mobile satellite network for voice, data and PNT services used by commercial and government customers, reported 2025 revenue of $871.7 million and operational EBITDA of $495.33 million. Those figures underscore Iridium’s scale and cash generation relative to Rocket Lab, which has built its reputation primarily in launch and space systems.

Founded by Sir Peter Beck, Rocket Lab is best known for its Electron rocket and has been pushing for years to broaden its business beyond launches into satellite systems, components and manufacturing. It is also developing the Neutron medium-lift rocket. In the first quarter of 2026, Rocket Lab reported revenue of $200.3 million. As of March 31, it had $1.2055 billion in cash and cash equivalents and a $2.2 billion backlog, according to the company’s SEC disclosures.

The transaction is expected to close in mid-2027, subject to customary conditions including approval by Iridium shareholders and required regulatory clearances. Rocket Lab said it plans to file a Form S-4 registration statement with the Securities and Exchange Commission that will include the proxy statement/prospectus for Iridium shareholders.

One key regulatory step will be communications licensing review. Because Iridium holds U.S. satellite authorizations and mobile-satellite spectrum licenses, a transfer of control would typically require review and consent from the Federal Communications Commission, which oversees U.S. communications licenses, in addition to other required approvals.

The companies outlined the deal and strategic rationale in a joint June 29 press release and related SEC filings. In the release, Beck, Rocket Lab’s founder and CEO, called the acquisition “a defining moment for the space industry” and said combining Iridium’s spectrum and network with Rocket Lab’s launch and manufacturing capabilities could open new markets.

If completed, the deal would mark one of Rocket Lab’s biggest steps yet in its effort to become a broader space infrastructure company, adding a mature communications network and subscriber base to a business built around rockets, satellites and space hardware.