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Rocket Lab to buy Iridium in $8 billion deal
Rocket Lab will pay $54 per Iridium share in a mix of cash and stock, with the deal expected to close in mid-2027.
Rocket Lab has agreed to acquire Iridium Communications in a transaction valued at about $8 billion, combining Rocket Lab's launch and equipment manufacturing business with Iridium's low earth orbit satellite network and related assets, according to a report from Yahoo Finance. Under the terms announced at the end of June, Rocket Lab will pay $54 per Iridium share using a mix of cash and stock. The purchase price translates to $27 per Iridium share plus Rocket Lab shares, with the specific exchange ratio still to be determined. The companies said their boards have unanimously approved the acquisition, describing it as a synergistic combination designed to create a vertically integrated space company that designs, builds, launches, and operates constellations for communications users worldwide. The deal is also subject to approval by Iridium shareholders and relevant regulatory authorities. Closing is expected in the middle of next year, and Yahoo Finance noted Iridium has been regularly profitable and free cash flow positive, with free cash flow hovering just below $300 million in 2025.