Rocket Lab to acquire Iridium Communications in $8B deal
Rocket Lab is making headlines with its $8 billion plan to acquire Iridium Communications.
This isn't just about rockets: Rocket Lab will now get Iridium's global satellite network and a huge customer base across government, aviation, maritime, and commercial sectors.
The deal should wrap up by mid-2027 and marks Rocket Lab's push to offer more than just launches.
Iridium shareholders get $27 plus stock
Iridium shareholders will get $27 per share in cash plus Rocket Lab stock, valuing their shares at a 24.1% premium over the last price.
After the news dropped, Rocket Lab's stock jumped 12% and Iridium's shot up by 22%.
To cover the cash part of the deal, Rocket Lab is using a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo along with its own funds.
Fun fact: Iridium pioneered one of the world's first global low Earth orbit satellite networks and now serves over 2.5 million subscribers.