Rocket Lab Corporation and Iridium Communications announced they have entered into a definitive agreement under which Rocket Lab will acquire Iridium. Rocket Lab will acquire all the outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction. This represents an enterprise value for Iridium of approximately $8.0 billion.
The acquisition will be one of the most transformative deals in the space industry, joining together two innovative American companies to play a leading role in the US space economy. It merges Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum, and 500-plus strong partner ecosystem to create a competitive, vertically-integrated space company that designs, builds, launches, and operates its own constellations, delivering critical communications capability to millions of users worldwide.
The transaction will give Rocket Lab an immediate foothold in space-based applications, including both proprietary and standards-based satellite Internet of Things (IoT) and direct-to-device (D2D), PNT, and critical safety-of-life services, creating a formidable challenger in the global telecom market. Rather than simply continuing the Iridium network, Rocket Lab will build upon it to scale into untapped markets and pioneer new space-based services to the benefit of global customers.
Iridium’s globally harmonised L-band spectrum and low Earth orbit (LEO) satellite network provide a secure, resilient foundation for reliable satellite communications and PNT services across government, defence, aviation, maritime, and commercial markets. Supporting more than 2.55 million active subscribers worldwide, Iridium delivers highly reliable, weather-resilient connectivity and an alternative PNT architecture for applications where Global Positioning Systema (GPS) and other Global Navigation Satellite Systema (GNSS) are degraded or unavailable.
Combining Rocket Lab’s launch, spacecraft manufacturing, and space systems expertise with Iridium’s global network and L-band spectrum will accelerate innovation, positioning the combined company to support the development and deployment of Iridium’s next-generation constellation. This includes direct-to-device (D2D/Iridium NTN Direct) services, which will grow into an important new capability for US national security and emergency response, helping to ensure reliable, resilient communications when and where they are needed most, particularly where traditional networks are unavailable or compromised.
“This is a defining moment for the space industry and the start of a new era of strategic, accelerated growth for Rocket Lab and Iridium,” said Sir Peter Beck, Founder and CEO of Rocket Lab. “Iridium has built the gold standard in secure, safety critical global satellite connectivity. It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organisations who operate in the most remote off-the-grid locations. By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets. We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers.”
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities,” said Matt Desch, CEO of Iridium. “Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible. We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities, and pursue new innovative applications as part of Rocket Lab – a fully integrated, end-to-end space company. That’s an incredible opportunity for our customers, partners, employees, and stockholders.”
Transaction highlights:
- strengthens Rocket Lab’s strategic vertical integration: creates an end-to-end space company spanning launch, spacecraft, spectrum, and on-orbit communications services through a proprietary network. Expected to eliminate third-party launch costs for constellation deployment and replenishment and captures launch margin internally while guaranteeing orbital access as launch capacity tightens, ensuring continuity of service to customers
- unlocks entry to space applications market: provides Rocket Lab with immediate access to a proven constellation of LEO satellites and an established global communications customer base, realising the company’s long-term strategic vision to expand beyond launch services and spacecraft manufacturing into a vertically integrated space applications company with recurring revenue from satellite services
- provides access to globally coordinated spectrum: adds globally coordinated L-band spectrum that enables reliable user communications
- unifies two trusted Government partners: the transaction combines two deeply trusted, long-standing defence partners, combining their specialised strengths to deliver highly resilient, next-generation capabilities directly to the warfighter across denied, degraded, and disadvantaged environments
- accelerates growth and new market opportunities: positions the combined entity to deliver next-generation satellite communications, resilient PNT, and emerging defence and commercial space services
- diversifies financial profile with recurring cash flow streams: in 2025, Iridium delivered $871.7 million revenue, $495 million OEBITDA or 57% OEBITDA margin, providing substantial recurring cash flow to fund growth
The transaction is expected to be completed in mid-2027, subject to the satisfaction of customary closing conditions, including approval of Iridium stockholders and required regulatory approvals.
