Rocket Lab Agrees to Acquire Iridium in 8 Billion Dollar Space Deal
Rocket Lab announced on June 29, 2026, that it will acquire Iridium Communications in a cash-and-stock deal valued at approximately $8 billion. The acquisition gives Rocket Lab control of Iridium's 66-satellite constellation, globally harmonized L-band spectrum, and 2.55 million active subscribers. The deal is expected to close in mid-2027.
Rocket Lab announced on June 29, 2026, that it will acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion. The deal represents a 24 percent premium over Iridium's closing share price on June 26.
The acquisition is intended to make Rocket Lab a fully vertically integrated space company. By combining its launch and satellite manufacturing capabilities with Iridium's existing global satellite network, spectrum, and customer base, Rocket Lab aims to become an end-to-end provider of space-based services.
CEO Peter Beck described the deal as a shortcut into the space applications market. The acquisition gives Rocket Lab three key assets it would otherwise take years to build: Iridium's globally harmonized L-band spectrum, an operational constellation of 66 satellites with 14 on-orbit spares, and 2.55 million active subscribers across government, defense, aviation, maritime, and commercial sectors.
Iridium shareholders will receive $27 in cash and a variable amount of Rocket Lab common stock per share, subject to a collar mechanism. Rocket Lab secured a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo to cover the cash portion.
The combined company plans to expand into direct-to-device services, positioning and navigation services, and enhanced national security capabilities. Rocket Lab's Neutron medium-lift rocket, currently in development, is expected to play a key role in deploying and replenishing future constellations.
The deal is expected to close in mid-2027, pending regulatory and shareholder approvals.
