Rocket Lab to buy Iridium for $8 billion in cash-and-stock deal, challenging SpaceX in satellite comms
The June 29 announcement gives Rocket Lab control of Iridium's 66-satellite LEO network, globally licensed L-band spectrum, and 2.55 million subscribers; Iridium shareholders receive $27 cash plus Rocket Lab stock for each share, valuing the deal at roughly $54 per share
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Summary
Rocket Lab agreed on June 29 to acquire satellite communications company Iridium in a cash-and-stock transaction valuing Iridium at roughly $8 billion, or $54 per share ($27 cash plus Rocket Lab stock). The deal gives Rocket Lab Iridium's 66-satellite low-Earth orbit network, globally licensed L-band spectrum, and more than 2.55 million subscribers across government, defence, aviation, maritime, and commercial markets. Rocket Lab secured a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo for the cash component. The transaction is expected to close in mid-2027 pending regulatory and Iridium shareholder approval.
Why it matters
The acquisition positions Rocket Lab as a vertically integrated launch-and-connectivity company with a global spectrum licence that no competitor can easily replicate, placing it in direct competition with SpaceX's Starlink for government and commercial satellite communications contracts.
What to watch
- Iridium shareholder vote and FCC/regulatory review timeline.
- How SpaceX and other LEO operators respond in government contracting.
- Whether Rocket Lab refinances the bridge loan before mid-2027 close.