- Rocket Lab has agreed to buy Iridium in an approximately $8 billion transaction
- The deal combines launch, satellite manufacturing and global communications capabilities
- The 2026 Air and Space Summit will examine commercial space relay, AI and more
Rocket Lab has agreed to acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion as part of a push to establish an end-to-end space company.
The proposed acquisition comes as government and industry continue advancing next-generation space communications, resilient satellite networks and commercial space capabilities. These priorities will be explored at the Potomac Officers Club’s 2026 Air and Space Summit on July 30, where experts will discuss commercial space relay, interoperable optical networks, artificial intelligence and machine learning, among other topics. Sign up now!
Rocket Lab said Monday it expects the transaction to close in mid-2027, subject to Iridium stockholder approval, regulatory clearances and other customary closing conditions.
What Capabilities Will Rocket Lab & Iridium Combine to Support the US Space Economy?
The proposed acquisition will combine Rocket Lab’s launch services, spacecraft manufacturing and space systems expertise with Iridium’s global low Earth orbit satellite communications network, globally coordinated L-band spectrum and more than 500 partners.
According to the companies, the combined business will design, build, launch and operate satellite constellations supporting communications, satellite Internet of Things, direct-to-device services, positioning, navigation and timing, and safety-of-life applications. Rocket Lab said the transaction also provides immediate access to recurring satellite services revenue while supporting development of Iridium’s next-generation constellation.
The companies added that the combined capabilities will support government, defense, maritime, aviation and commercial customers, including communications in denied, degraded and disadvantaged environments.
What Did Iridium & Rocket Lab CEOs Say About the Deal?
Iridium CEO Matt Desch said the continued convergence of space and terrestrial communications will increase reliance on space-based capabilities for critical services.
“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,” added Desch, a 2026 Wash100 awardee.
Peter Beck, founder and CEO of Rocket Lab, said Iridium has established a secure, safety-critical global satellite connectivity network used by maritime operators, the aviation industry, governments and industrial organizations operating in remote 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,” Beck added.
What Are the Details of the Transaction?
Under the agreement, Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share, consisting of $27 in cash and Rocket Lab common stock, subject to an exchange ratio and collar.
Rocket Lab said the acquisition has been unanimously approved by the boards of directors of both companies. Each Iridium director holding company shares has also entered into a voting agreement supporting the transaction.
To finance the cash portion of the acquisition, Rocket Lab has secured commitments for a $3.6 billion 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo. The company said it also plans to fund the transaction using cash on hand and additional debt and equity financing sources.
For Rocket Lab, Deutsche Bank Securities is serving as lead financial adviser, while Wells Fargo and PJT Partners are serving as financial advisers. Wilson Sonsini Goodrich & Rosati is serving as legal counsel, Goodwin Procter is serving as financing counsel and DLA Piper is serving as regulatory counsel.
For Iridium, Evercore is serving as exclusive financial adviser, Davis Polk & Wardwell is serving as legal counsel, Wilkinson Barker Knauer is serving as regulatory counsel and Joele Frank, Wilkinson Brimmer Katcher is serving as strategic communications adviser.
