The acquisition shifts Rocket Lab’s model to recurring revenue and vertical integration, backed by a $3.6 billion bridge loan.
Rocket Lab will acquire Iridium Communications in an $8 billion cash-and-stock transaction, expected to close in mid-2027. The deal includes a $3.6 billion bridge loan to fund the acquisition, transitioning Rocket Lab from one-time launch revenue to a subscription-based model.
Iridium brings licensed spectrum, a global network, and long-term government contracts, addressing gaps in Rocket Lab’s vertically integrated platform. The acquisition also enables in-house deployment of future Iridium satellites via Rocket Lab’s Neutron rocket, reducing costs.
The move mirrors SpaceX’s strategy with Starlink, aiming to control satellite design, launch, and network operations. Analysts view the deal as a step toward building a durable space economy business.