Rocket Lab Buys Iridium for $8 Billion to Build End-to-End Space Network

3 articles · Updated · PR Newswire · Jun 29

Iridium shareholders will receive $54 a share in cash and stock under a definitive deal valuing the satellite operator at about $8 billion, with closing targeted for mid-2027.
Rocket Lab is using the acquisition to add Iridium’s global L-band spectrum, low-Earth-orbit network and 2.55 million subscribers to its launch and satellite manufacturing business.
The combined company aims to expand beyond launch into recurring satellite services, including IoT, direct-to-device, resilient positioning and national-security communications.
Iridium generated $871.7 million of 2025 revenue and $495 million of OEBITDA, giving Rocket Lab immediate scale and cash flow as it pursues vertical integration.
Rocket Lab has lined up a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo; the deal still needs Iridium shareholder and regulatory approval.

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Rocket Lab’s $8 Billion Acquisition of Iridium: Creating a Vertically Integrated Space Powerhouse

Overview

On June 29, 2026, Rocket Lab announced it will acquire Iridium for about $8 billion, paying $54 per share with a mix of cash and Rocket Lab stock managed by a collar mechanism. This deal marks a pivotal moment for both companies and is set to reshape the global space sector. By combining Rocket Lab’s launch and manufacturing strengths with Iridium’s satellite communications, the acquisition will create a vertically integrated space company. This strategic move aims to expand market reach, streamline operations, and position Rocket Lab as a major force in the evolving space industry.

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