Rocket Lab Corporation and Iridium Communications Inc. have entered into a definitive agreement under which Iridium will be acquired by Rocket Lab in a cash and stock transaction.
Under the agreement, Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share, representing an enterprise value for Iridium of approximately $8.0 billion.
The transaction represents an enterprise value for Iridium of approximately $8.0 billion. The acquisition joins together two American companies in the U.S. space economy, combining Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum, and 500-plus strong partner ecosystem.
According to the companies, the combined, vertically integrated space company will design, build, launch, and operate its own constellations, delivering critical communications capability to millions of users worldwide.
The transaction gives Rocket Lab an immediate foothold in space-based applications, including proprietary and standards-based satellite Internet of Things (IoT), Direct-to-Device (D2D), Positioning, Navigation, and Timing (PNT), and critical safety-of-life services. Rather than simply continuing the Iridium network, Rocket Lab plans to build upon it to scale into untapped markets and pioneer new space-based services.
Iridium’s globally harmonized L-band spectrum and Low Earth Orbit (LEO) satellite network support more than 2.55 million active subscribers worldwide. The network provides a foundation for reliable, weather-resilient satellite communications and alternative PNT services across government, defense, aviation, maritime, and commercial markets, including applications where Global Positioning System (GPS) and other Global Navigation Satellite Systems (GNSS) are degraded or unavailable.
Combining Rocket Lab’s launch, spacecraft manufacturing, and space systems expertise with Iridium’s global network and L-band spectrum is expected to support the development and deployment of Iridium’s next-generation constellation. This includes direct-to-device (D2D/Iridium NTN DirectSM) services, which the companies state will grow into an important new capability for U.S. national security and emergency response by helping ensure reliable, resilient communications where traditional networks are unavailable or compromised.
Sir Peter Beck, founder and CEO of Rocket Lab, commented, “This is a defining moment for the space industry and the start of a new era of strategic, accelerated growth for Rocket Lab and Iridium. Iridium has built the gold standard in secure, safety critical global satellite connectivity. It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organizations who operate in the most remote off-the-grid locations. By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets. We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers.”
From a strategic standpoint, the acquisition is expected to create an end-to-end space company spanning launch, spacecraft, spectrum, and on-orbit communications services through a proprietary network. The companies stated that the transaction is expected to eliminate third-party launch costs for constellation deployment and replenishment, capture launch margin internally, and guarantee orbital access as launch capacity tightens.
The transaction also combines two long-standing government and defense partners. According to the companies, their combined capabilities are intended to support resilient, next-generation services across denied, degraded, and disadvantaged environments.
Matt Desch, CEO, Iridium, added, “As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities. Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible. We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT, and national security capabilities, and pursue new innovative applications as part of Rocket Lab – a fully integrated, end-to-end space company. That’s an incredible opportunity for our customers, partners, employees, and stockholders.”
Financially, the acquisition is expected to diversify Rocket Lab’s profile with recurring cash flow streams. In 2025, Iridium delivered $871.7 million in revenue and $495 million in OEBITDA, representing a 57% OEBITDA margin.
