NEW YORK — Rocket Lab Corporation agreed to acquire satellite communications provider Iridium Communications in a cash-and-stock deal valued at approximately $8 billion, the companies said Monday, in one of the largest consolidation moves yet in the commercial space industry.
Under the agreement, Iridium shareholders will receive $54 per share, comprising $27 in cash and Rocket Lab common stock, representing a 24.1% premium over Iridium's closing price on June 26, according to the companies. The boards of both companies unanimously approved the transaction, which is expected to close in mid-2027 pending Iridium shareholder approval and regulatory clearances.
The deal gives Rocket Lab control of Iridium's 66-satellite low-Earth orbit constellation, its globally licensed L-band spectrum, and a customer base exceeding 2.55 million subscribers across government, defense, aviation and maritime markets, the companies said. Rocket Lab Chief Executive Peter Beck described the acquisition as one of the most transformative deals in the space industry's history, according to a company presentation.
Rocket Lab Chief Financial Officer Adam Spice said the transaction is expected to be significantly accretive to the company's cash flow and profitability. Iridium reported $871.7 million in revenue and $114.4 million in net income for fiscal 2025, compared with Rocket Lab's $601.8 million in revenue and a $198.2 million net loss over the same period, according to the companies.
The acquisition positions Rocket Lab to compete more directly with SpaceX's Starlink unit by combining launch capabilities with an established satellite communications network, following a strategy similar to that of its rival.
Shares of Rocket Lab rose 10% and Iridium shares climbed about 22% in trading Monday following the announcement, according to market data.
The transaction remains subject to closing conditions, and further details on regulatory review are expected as the deal progresses toward its anticipated mid-2027 completion.
