Rocket Lab to Acquire Iridium Communications in an $8 Billion Deal

Rocket Lab Corporation (RKLB) entered a merger agreement on June 29, 2026, to acquire Iridium Communications Inc. (IRDM) in a deal valued at $8 billion.

Deal Structure:

Iridium stockholders will receive $27 in cash and a number of shares of Rocket Lab common stock calculated pursuant to an exchange ratio (subject to a collar) for each share of Iridium common stock outstanding at the closing. The collar is banded from $67.5 to $112.5.

The transaction has a notional value of $54 per share of Iridium common stock, representing a premium of 24.08% from the stock’s last close.

Company Profile:

Iridium Communications is a satellite communications company that provides mobile voice, data, IoT, and positioning services through its global satellite network. The company serves commercial, government, aviation, maritime, defense, and industrial customers with connectivity solutions and related communication devices.

Rocket Lab is a space and aerospace company that provides launch services, spacecraft, satellite components, and space systems for commercial, government, and defense customers. The company operates the Electron launch vehicle, is developing the Neutron rocket, and offers spacecraft and mission services for satellite, national security, and space exploration applications.

Deal Details and Timeline:

This transaction will give Rocket Lab an immediate presence in space-based services such as satellite IoT, direct-to-device (D2D) communications, positioning and navigation (PNT), and critical safety services. Instead of only operating the existing Iridium network, Rocket Lab plans to expand these services into new markets and develop additional space-based communication solutions for customers worldwide.

The merger is expected to be completed in mid-2027.

Rocket Lab has secured commitments from Deutsche Bank and Wells Fargo for a $3.6 billion, 364-day senior secured bridge loan facility. The company expects to fund the cash portion of the transaction using a combination of existing cash on hand, debt financing, and equity financing.

Evercore acted as the financial advisor to Iridium Communications, while Davis Polk & Wardwell and Wilkinson Barker Knauer served as its legal advisors. For Rocket Lab, Deutsche Bank Securities, Wells Fargo, and PJT Partners provided financial advice, while Wilson Sonsini Goodrich & Rosati, Goodwin Procter, and DLA Piper acted as legal advisors.

Rocket Lab is paying 14.32 times EBITDA for Iridium Communications.

Deal Metrics:

For an in-depth analysis of this M&A transaction, please visit the deal metrics page here:
Deal Metrics for the acquisition of Iridium Communications Inc. (IRDM) by Rocket Lab Corporation (RKLB)

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• A spread history chart of the merger from announcement through eventual completion or failure.
• Every event as the merger progresses through the expiration of the HSR period, various regulatory approvals, shareholder votes, etc.
• News and SEC filings.
• A history of deal updates.
• And a whole lot more.

Disclaimer: This article does not serve as investment advice. Please conduct your own research before undertaking any transactions involving the securities mentioned in this article. We do not guarantee the completeness or accuracy of the content or data provided in this article.

Editor’s Note: Baranjot Kaur contributed to this article