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Rocket Lab to Buy Iridium for $8 Billion

The transaction gives Rocket Lab L‑band spectrum, a 66‑satellite network and recurring subscriber revenue, remaining subject to shareholder and regulatory approval.

Overview

  • The companies announced the agreement on June 29 and both boards have unanimously approved the cash‑and‑stock deal that values Iridium at roughly $54 per share.
  • Rocket Lab secured a committed $3.6 billion, 364‑day senior secured bridge loan from Deutsche Bank and Wells Fargo to cover the $27 per‑share cash portion while it arranges longer‑term financing.
  • Under the terms Iridium shareholders will receive $27 in cash plus Rocket Lab shares via a collared exchange ratio, and Iridium is expected to be delisted and become an indirect Rocket Lab subsidiary after closing.
  • Rocket Lab says the acquisition will fold Iridium’s L‑band spectrum, 66‑satellite LEO network and ~2.55 million customers into its launch and manufacturing platform to cut third‑party launch costs and build recurring communications revenue.
  • The companies expect to close in mid‑2027 but face regulatory review (including spectrum and national security scrutiny), a shareholder vote, financing execution and the operational risk of Rocket Lab delivering on its Neutron rocket and integration plans.