Deal values Iridium at $54 per share, a 24.1% premium, combining launch and satellite communications under one roof.
Rocket Lab will acquire Iridium Communications in an $8 billion cash-and-stock transaction, gaining control of a 66-satellite low-Earth orbit network and 2.55 million subscribers. The deal values each Iridium share at $54, split evenly between cash and Rocket Lab stock, reflecting a 24.1% premium over Iridium’s last closing price.
The transaction follows recent consolidation in the satellite sector, including Amazon’s acquisition of Globalstar and SES’s purchase of Intelsat. Rocket Lab aims to integrate Iridium’s licensed L-band spectrum and customer base to compete with SpaceX’s Starlink, which combines launch and satellite services.
Pending regulatory and stockholder approvals, the deal is expected to close in mid-2027. Both companies’ boards have unanimously approved the agreement.