Rocket Lab has agreed to acquire satellite communications provider Iridium in a cash-and-stock transaction valuing the company at approximately US$8 billion, creating one of the most significant vertically integrated businesses in the global space industry.
Under the agreement, Rocket Lab will acquire all outstanding Iridium shares for US$54 per share. The combined company will bring together Rocket Lab’s launch services, satellite manufacturing and space systems expertise with Iridium’s global low Earth orbit (LEO) satellite network, L-band spectrum and ecosystem of more than 500 partners.
The acquisition gives Rocket Lab an immediate presence in fast-growing space-based applications, including satellite Internet of Things (IoT), direct-to-device (D2D) communications, positioning, navigation and timing (PNT), and critical safety services. The company also plans to build on Iridium’s existing network by expanding into new markets and developing next-generation satellite services.
Iridium currently serves more than 2.55 million subscribers worldwide, providing resilient satellite communications and alternative PNT services for government, defence, aviation, maritime and commercial customers. Rocket Lab said the combination will accelerate the deployment of Iridium’s next-generation constellation, including direct-to-device capabilities designed to strengthen national security, emergency response and resilient communications where terrestrial networks are unavailable or compromised.
