Under the agreement, Rocket Lab will acquire all outstanding shares of Iridium common stock for a notional value of $54 per share. Iridium stockholders will receive $27.00 in cash and a number of Rocket Lab common shares calculated under an exchange ratio subject to a collar ranging from $67.50 to $112.50.
The companies said the transaction would combine Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum and partner ecosystem. They said the combined company would design, build, launch and operate its own constellations while delivering communications capability to millions of users worldwide.
Rocket Lab said the acquisition would give it an immediate position in space-based applications, including satellite Internet of Things, direct-to-device services, positioning, navigation and timing, and critical safety-of-life services. The company said it plans to build on Iridium’s network to scale into untapped markets and develop new space-based services.
Iridium operates a low Earth orbit satellite network and globally harmonized L-band spectrum supporting government, defense, aviation, maritime and commercial markets. The company supports more than 2.55 million active subscribers worldwide with weather-resilient connectivity and an alternative PNT architecture for uses where GPS and other global navigation satellite systems are degraded or unavailable.
The companies said the combination would support the development and deployment of Iridium’s next-generation constellation. This includes direct-to-device services under Iridium NTN Direct, which they said would become an important new capability for U.S. national security and emergency response.
“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 organizations 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.” Rocket Lab said the deal supports its long-term strategy to expand beyond launch services and spacecraft manufacturing into recurring satellite services.
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities,” said Matt Desch, CEO, 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.”
The companies said the transaction would create an end-to-end space company spanning launch, spacecraft, spectrum and on-orbit communications services through a proprietary network. They said it is expected to eliminate third-party launch costs for constellation deployment and replenishment, capture launch margin internally and guarantee orbital access as launch capacity tightens.
Rocket Lab said the acquisition would add globally coordinated L-band spectrum and combine two long-standing government and defense partners. The companies said the combined entity would be positioned to deliver resilient next-generation capabilities in denied, degraded and disadvantaged environments.
Iridium reported $871.7 million in revenue in 2025 and $495 million in OEBITDA, representing a 57% OEBITDA margin. The companies said those recurring cash flows would help fund growth and support expansion into satellite communications, resilient PNT and emerging defense and commercial space services.
The transaction is expected to close in mid-2027, subject to customary closing conditions, including Iridium stockholder approval and required regulatory approvals. The boards of directors of both companies have unanimously approved the transaction, and each Iridium director holding shares has entered into a voting agreement to support it.
Rocket Lab has received commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo. The company intends to fund the cash portion of the transaction through a combination of balance-sheet cash and other debt and equity financing sources.
