Rocket Lab Corporation (NASDAQ:RKLB) shares are trading higher Tuesday on possible continued momentum after the company announced a definitive agreement to acquire Iridium Communications Inc.
(NASDAQ:IRDM).
The Deal Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction, implying an enterprise value for Iridium of approximately $8.0 billion.
Iridium stockholders will receive $27.00 in cash plus a number of Rocket Lab shares calculated via an exchange ratio subject to a collar banded from $67.50 to $112.50.
The deal has been unanimously approved by both companies' boards, and every Iridium director holding shares has entered into a voting agreement to support the transaction.
