Overview
- Rocket Lab announced on Monday that it will acquire Iridium for about $8 billion, valuing Iridium at $54 per share made up of $27 in cash and the remainder in Rocket Lab stock.
- The deal transfers Iridium’s operating 66-satellite low‑Earth‑orbit network, globally licensed L‑band spectrum and roughly 2.55 million subscribers to Rocket Lab.
- Rocket Lab has a committed $3.6 billion bridge loan from Deutsche Bank and Wells Fargo to cover the cash portion and plans to use cash on hand plus additional debt or equity to complete financing.
- Both companies’ boards unanimously approved the agreement but the transaction still needs Iridium shareholder consent and regulatory clearance and is targeted to close in mid‑2027.
- The acquisition accelerates Rocket Lab’s strategy of vertical integration and positions it to compete more directly with larger players, but it raises near‑term execution and dilution risks because the deal is large relative to Rocket Lab’s current market value.