Rocket Lab, a US-based space company that builds satellites and provides launch services, said on June 29 it would acquire satellite communications provider Iridium Communications in a cash-and-stock deal valued at about US$8 billion.

Iridium shareholders would receive US$27 in cash plus Rocket Lab shares, for a combined value of US$54 per share, a 24.1% premium to Iridium’s last closing price before the deal was announced.

The companies expect the transaction to close in mid-2027, subject to Iridium shareholder approval and regulatory approvals.

At US$8 billion, the deal is larger than several recent space industry transactions, including CACI’s US$2.6 billion bid for ARKA Group.

The acquisition would add Iridium’s low Earth orbit communications network, which supports more than 2.55 million active subscribers worldwide across government, defense, aviation, maritime, and commercial markets.

The network also provides voice, data, and positioning, navigation, and timing services.

Rocket Lab said it has commitments for a US$3.6 billion, 364-day senior secured bridge term loan facility.

It plans to fund the cash portion of the deal with cash on hand, as well as other debt and equity financing sources.

🔗 Source: Rocket Lab