Rocket Lab USA Inc (NASDAQ:RKLB) announced that it has agreed to acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion in a deal that would combine a leading launch and spacecraft manufacturer with an established global satellite…
mmunications operator. Under the terms of the agreement, Iridium shareholders will receive $27 in cash and a portion of Rocket Lab stock for each Iridium share, subject to a collar mechanism tied to Rocket Lab’s share price
The total consideration implies a value of about $54 per Iridium share. Following the announcement, Rocket Lab shares surged almost 12% to about $94, while Iridium stock jumped 22% to about $53. The companies said the combination would unite Rocket Lab’s launch services and satellite manufacturing capabilities with Iridium’s low Earth orbit communications network, global spectrum rights and subscriber base.
The merged group would operate as a vertically integrated space company spanning launch, spacecraft production and satellite-based communications services. Iridium operates a LEO constellation supporting more than 2.5 million subscribers across government, maritime, aviation and commercial markets. The company generated $871.7 million in revenue and $495 million in OEBITDA in 2025, according to the announcement.