Rocket Lab up 12% as Iridium jumps 21% on $8B deal

Rocket Lab announced an $8 billion cash-and-stock acquisition of Iridium Communications that values Iridium at $54 per share. Under the agreement, Iridium shareholders will receive $27 in cash plus Rocket Lab stock, a 24.1% premium to Iridium’s last closing price. The companies expect the deal to close in mid-2027.

The transaction will combine Rocket Lab’s launch vehicles and satellite-manufacturing business with Iridium’s global L-band satellite network, licensed spectrum and more than 2.5 million subscribers across government, defense, aviation, maritime and commercial markets.

Rocket Lab has obtained a $3.6 billion bridge loan commitment from Deutsche Bank and Wells Fargo to finance the cash portion. The company also plans to use cash on hand and seek additional debt and equity financing to complete the deal.

An investor presentation accompanying the announcement said the acquisition bypasses three common barriers to building a satellite communications business: obtaining spectrum, waiting years to deploy infrastructure before generating revenue, and assembling a customer base that produces recurring cash flow. The presentation included the line ‘We’ve found a shortcut.’

In trading after the announcement, Rocket Lab shares rose about 12% while Iridium jumped roughly 21%. Iridium has more than doubled in value so far this year. Rocket Lab’s stock had seen inflows tied to its recent addition to the Nasdaq-100, which created one-time demand as index funds rebalanced. The broader commercial space sector has experienced rotation following a large industry IPO in June.

Company executives said the combined business will give Rocket Lab an immediate presence in space-based telecommunications services, including satellite Internet of Things, direct-to-device connectivity, positioning and navigation, and safety-critical communications. The firms plan to use Iridium’s low-Earth orbit network and globally harmonized L-band spectrum to expand into new markets and offer secured communications and positioning services.

The agreement is subject to customary closing conditions and regulatory approvals. If completed, the transaction will integrate an operational satellite service into Rocket Lab’s manufacturing and launch operations, with the parties targeting mid-2027 for completion.