Rocket Lab Acquires Iridium in $8B Vertically Integrated Space Deal
Rocket Lab Corporation (Nasdaq: RKLB) and Iridium Communications Inc. (Nasdaq: IRDM) today announced a definitive agreement under which Rocket Lab will acquire Iridium in a cash and stock transaction at $54 per share, representing an enterprise value of approximately $8.0 billion.
The deal is one of the most consequential in the space industry’s recent history, and it positions Rocket Lab squarely against SpaceX in the battle for orbital dominance.
A Fully Integrated Space Powerhouse
The transaction merges Rocket Lab’s leading launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum, and 500-plus strong partner ecosystem, creating a vertically integrated company that designs, builds, launches, and operates its own constellations. Notably, the deal expected to eliminate third-party launch costs for constellation deployment, capturing that margin internally while guaranteeing Rocket Lab’s own orbital access as global launch capacity tightens.
Iridium’s globally harmonised L-band spectrum and low Earth orbit (LEO) satellite network support more than 2.55 million active subscribers worldwide, delivering connectivity and an alternative positioning, navigation, and timing (PNT) architecture for applications where GPS signals are degraded or unavailable. That spectrum footprint widely regarded as one of the most valuable and difficult-to-replicate assets in the satellite communications industry.
In 2025, Iridium delivered $871.7 million in revenue and $495 million in operational EBITDA, representing a 57% OEBITDA margin providing substantial recurring cash flow for the combined entity.
Rocket Lab CEO Sir Peter Beck said: “By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive launch and manufacturing capabilities, we have the capability to unlock entirely new markets.”
Each Iridium stockholder will receive $27.00 in cash plus Rocket Lab shares at an exchange ratio subject to a collar banded between $67.50 and $112.50. The transaction expected to close in mid-2027, pending regulatory and stockholder approvals.
