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FinanceRocket Lab to acquire Iridium Communications in ~$8 bln deal
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Rocket Lab (RKLB) announced on June 29 a definitive agreement to acquire Iridium Communications for approximately $8.0 billion. Iridium shareholders will receive $54 per share in cash and stock. The merger aims to create a fully vertically integrated space company by combining Rocket Lab's launch and satellite manufacturing expertise with Iridium's global satellite network and L-band spectrum. This provides Rocket Lab an immediate foothold in space applications like IoT, direct-to-device services, and PNT solutions. The combined entity expects revenue scale from Iridium's 2.55 million subscriber base and improved cash flow generation. Both companies view the deal as transformative for next-generation satellite infrastructure, targeting government, defense, and commercial customers. The transaction is expected to close in mid-2027, pending regulatory and shareholder approvals.
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By Maham Fatima Sat, July 4, 2026 at 5:56 AM PDT | 2 min read
- RKLB: +0.39%
- IRDM: -3.54%
Rocket Lab Corporation (NASDAQ: RKLB) is considered one of the best NASDAQ stocks to invest in for the long term.
On June 29, Rocket Lab announced a definitive agreement to acquire Iridium Communications in a transaction valued at approximately $8.0 billion. Under the terms, Iridium shareholders will receive $54 per share in a mix of cash and stock. This historic merger aims to create a fully vertically integrated space powerhouse by combining Rocket Lab's launch and satellite manufacturing expertise with Iridium's global satellite network and L-band spectrum.
The deal supports Rocket Lab's strategic capabilities, providing an immediate foothold in the space applications market, including IoT, direct-to-device services, and resilient positioning, navigation, and timing (PNT) solutions. By capturing launch margins internally and leveraging Iridium's base of over 2.55 million subscribers, the combined entity expects to achieve material revenue scale and enhance long-term cash flow generation.
Both companies view the acquisition as a transformative move to accelerate the development of next-generation satellite infrastructure. The partnership will focus on pioneering new space-based services for government, defense, and commercial customers while ensuring the continuity and advancement of Iridium's existing constellation. The transaction is expected to close in mid-2027, pending regulatory and stockholder approvals.
Rocket Lab Corporation is a space technology company headquartered in Long Beach, California, and founded in 2006. The company designs and manufactures rockets, spacecraft, and satellite components while providing dedicated launch services for small and medium-sized payloads.
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Rocket Lab Acquires Iridium for $8 Billion to Rival SpaceX