Rocket Lab announced on Monday that it will acquire satellite communications provider Iridium Communications in a deal valued at approximately $8 billion, representing one of the largest consolidations in the commercial space industry.
Shareholders of Iridium will receive $27 in cash along with Rocket Lab shares, totaling a value of $54 per Iridium share a 24.1% premium over the last closing price. The transaction is expected to be finalized by mid-2027.
In response to the announcement, Rocket Lab’s shares surged 9% in premarket trading, while Iridium’s shares, which have already more than doubled this year, jumped around 20%.
This acquisition aims to merge Rocket Lab’s launch vehicles and satellite manufacturing capabilities with Iridium’s extensive global L-band satellite network, licensed spectrum, and a subscriber base exceeding 2.5 million across government, defense, aviation, maritime, and commercial sectors.
Source (CNBC)
