Rocket Lab will acquire all outstanding shares of Iridium common stock in a cash and stock transaction that will represent an enterprise value for Iridium of approximately $8bn.
Aerospace manufacturer Rocket Lab has announced plans to acquire satellite services platform Iridium Communications. Under the ‘definitive agreement’, Rocket Lab will acquire all the outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction, representing an enterprise value for Iridium of approximately $8bn.
Initially,established by Motorola in the 1980s, Iridium developed one of the world’s first global low-Earth orbit satellite communications networks and in the 90s, after a financial decline, reestablished itself as a provider of communications services to government, aviation, maritime and industrial consumers.
The acquisition will merge Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum, and 500-plus strong partner ecosystem, combining their reach in the US space ecosystem and creating a potential rival to Elon Musk’s SpaceX.
SpaceX recently raised a record-breaking $75bn in its IPO debut, effectively ‘setting the scene’ for AI rivals Anthropic and OpenAI as they also prepare to make their organisations public.
