Rocket Lab to Buy Iridium

Rocket Lab Corporation on June 28, 2026, agreed to acquire Iridium Communications Inc. in a cash-and-stock merger that the companies said will combine Rocket Lab’s launch and satellite manufacturing with Iridium’s global L-band network to expand revenue scale and cash-flow generation.

Deal Terms, Financing, and Governance

The companies signed a definitive Agreement and Plan of Merger using a two-step structure. First, Merger Sub I will merge with Iridium, followed by a second merger of the surviving entity with Merger Sub II, making Iridium an indirect wholly owned subsidiary of Rocket Lab.

Iridium shareholders will receive $27.00 in cash plus Rocket Lab common shares based on an exchange ratio subject to a collar. The collar adjusts the ratio if Rocket Lab shares trade between $67.50 and $112.50, maintaining a notional value of $54.00 per Iridium share. This implies an enterprise value of about $8.0 billion and represents roughly a 24% premium to Iridium’s prior closing price.

Rocket Lab secured commitments for a $3.6 billion, 364-day senior secured bridge term loan facility from Deutsche Bank and Wells Fargo to fund part of the cash consideration. The company plans to combine this bridge facility with other debt, equity financing, and cash on hand to satisfy the cash component.

The merger agreement includes customary no-shop provisions with fiduciary-out exceptions and grants Rocket Lab matching rights if a competing bid arises. It also contains a termination fee of $223.62 million payable by Iridium under specified circumstances, such as accepting a superior proposal or changing board recommendations. Both companies’ boards unanimously approved the transaction, and Iridium directors holding about 1.6% of the outstanding common stock have entered voting and support agreements.

Upon closing, Iridium’s common stock will be delisted from Nasdaq, and its equity awards will be assumed or cashed out according to the merger terms.

Strategic Rationale and Regulatory Approvals

The companies described the deal as combining Rocket Lab’s launch and spacecraft manufacturing capabilities with Iridium’s global L-band satellite network, licensed spectrum, and a subscriber base exceeding 2.5 million across government, defense, aviation, maritime, and commercial markets. The combination aims to create a fully vertically integrated space platform supporting critical space applications.

Access to Iridium’s satellite fleet, spectrum, and recurring subscription revenue could broaden Rocket Lab’s addressable market and strengthen its competitive position against SpaceX’s Starlink-style offerings.

Closing requires approval by a majority of Iridium’s outstanding common stock and multiple regulatory clearances, including expiration of Hart-Scott-Rodino antitrust waiting periods, Federal Communications Commission consent for transfers of communications authorizations, and approvals under foreign investment and satellite laws. The Securities and Exchange Commission must declare effective a Form S-4 registering the Rocket Lab shares to be issued, and Nasdaq must approve listing those shares. The companies target a mid-2027 closing, subject to customary conditions such as the absence of material adverse effects or legal injunctions.

Two law firms announced investigations into whether Iridium shareholders are receiving a fair price for the proposed transaction.