Rocket Lab to buy Iridium in $8B cash-and-stock space comms deal

Rocket Lab has agreed to acquire Iridium Communications in a cash-and-stock merger that values the satellite communications company at approximately $8 billion. Under the terms of the definitive agreement, each Iridium share will be exchanged for $27.00 in cash plus Rocket Lab common stock determined by an exchange ratio subject to a collar, resulting in a notional value of $54.00 per Iridium share and implying an enterprise value of about $8.0 billion. The collar on the Rocket Lab share consideration is banded between $67.50 and $112.50. Both companies’ boards of directors have unanimously approved the transaction, which is structured as a two-step merger and is generally intended to be tax-free for Iridium shareholders to the extent stock value requirements are met.

Rocket Lab plans to finance the cash portion of the deal through a combination of existing cash, new debt, and potential equity financing, backed by a committed $3.6 billion 364-day senior secured bridge loan facility arranged with Deutsche Bank and Wells Fargo. Closing is targeted for mid-2027, subject to approval by Iridium shareholders, clearance from U.S. and foreign antitrust and communications regulators including the FCC, and effectiveness of a Form S-4 registration statement. Following completion, Iridium is expected to be delisted, with its equity awards either assumed by Rocket Lab or cashed out under the merger terms. The agreement includes customary no-shop provisions, support agreements from Iridium directors representing about 1.6% of the outstanding shares, and a $223.62 million termination fee payable by Iridium in specified circumstances. The combination pairs Iridium’s global LEO satellite voice, data, and PNT network with Rocket Lab’s launch and space systems capabilities, creating a vertically integrated space communications platform spanning satellite infrastructure, services, and launch.