- Roughly 99.6 percent of votes cast favored the merger
- Shareholders will receive $27 per share in cash plus Rocket Lab common stock
- Closing is expected by mid-2027, pending remaining regulatory approvals
Iridium Communications stockholders have approved the company’s acquisition by Rocket Lab, clearing one of the last hurdles before the roughly $8 billion deal can close.
About 99.6 percent of the votes cast supported the merger at a special meeting Thursday, representing roughly 81 percent of outstanding shares entitled to vote, Iridium said.
Iridium stockholders will receive $27 per share in cash plus Rocket Lab common stock at an exchange ratio subject to a collar, bringing the notional value to $54 per share. The transaction is expected to close by mid-2027.
What Remains Before Closing the Iridium-Rocket Lab Merger?
Regulatory approvals and customary closing conditions are outstanding.
Rocket Lab disclosed in August that a federal antitrust review period tied to the transaction had lapsed, and it filed a registration statement with the Securities and Exchange Commission along with applications to transfer Iridium’s licenses with the Federal Communications Commission.
The company completed a $1.94 billion at-the-market equity offering this month, issuing 29.3 million shares to cover the cash portion of the purchase. It separately terminated a $3.6 billion bridge facility that had been lined up when the merger agreement was signed, and Iridium amended its term loan to carve the acquisition out of the change-of-control provisions.
What Would the Combined Iridium-Rocket Lab Company Look Like?
Rocket Lab provides launch services, spacecraft and satellite components for commercial, government and national security customers. Its Electron rocket handles orbital launches, its HASTE vehicle supports hypersonic testing for the U.S. government and its Neutron vehicle is in development for medium launch.
Iridium operates a low Earth orbit satellite network carrying voice, data and messaging, along with positioning, navigation and timing and aircraft surveillance services. It holds globally coordinated L-band spectrum and works through more than 500 technology and distribution partners.
“Today’s vote is an important milestone toward bringing together two companies with complementary capabilities, a shared commitment to innovation, and deep experience supporting some of the world’s most critical missions,” said Matt Desch, CEO of Iridium and a 12-time Wash100 Award winner.
How Does the Merger Fit Rocket Lab’s Acquisition Pace?
Rocket Lab agreed to buy Iridium in June. The deal was announced after Rocket Lab completed its purchase of Optical Support in February, adding optical manufacturing for national security work. It acquired Mynaric in April for laser communications supporting the Space Development Agency’s satellite architecture and closed on Motiv Space Systems in May, forming a robotics unit.
