Rocket Lab Corp. (NASDAQ:RKLB) and Iridium Communications Inc. (NASDAQ:IRDM) announced Monday that they have entered into a definitive agreement under which Rocket Lab will acquire Iridium in a cash-and-stock transaction valued at approximately $8 billion in enterprise value.
Under the agreement, Iridium shareholders will receive $27 in cash plus Rocket Lab shares, subject to an exchange ratio collar, for a total implied value of $54 per share. The transaction is expected to close in mid-2027, pending shareholder and regulatory approvals.
Rocket Lab Expands Into Satellite Communications
Following the announcement, RKLB stock jumped nearly 10%. The deal would transform Rocket Lab into a more vertically integrated space company with launch, satellite manufacturing and communications capabilities.
The acquisition combines Rocket Lab’s launch and satellite manufacturing business with Iridium’s global satellite communications network, L-band spectrum and partner ecosystem. The combined company aims to design, build, launch and operate its own satellite constellations while expanding recurring communications revenue.
