Rocket Lab to buy Iridium for $8 billion, creating an integrated space communications firm

Rocket Lab announced an agreement to acquire Iridium Communications in a cash‑and‑stock transaction valued at roughly $8 billion, pricing Iridium shares at $54 each ($27 in cash and the balance in Rocket Lab stock). The deal is expected to close in mid‑2027, subject to approval by Iridium shareholders and regulatory clearances. Financing includes a $3.6 billion senior secured bridge loan from Deutsche Bank and Wells Fargo.

The acquisition combines Rocket Lab’s launch services and satellite‑manufacturing capabilities with Iridium’s 66‑satellite low‑Earth‑orbit constellation, L‑band spectrum and a subscriber base of over 2.5 million users spanning government, defense, aviation, maritime and commercial sectors. Iridium generated $872 million in revenue and $114 million profit last year, while Rocket Lab posted a $198 million net loss in 2025. By integrating launch, manufacturing and communications, Rocket Lab aims to compete more directly with SpaceX and other large space firms, expanding into satellite IoT, direct‑to‑device services and positioning, navigation and timing applications.