Rocket Lab to Acquire Iridium for $8 Billion in Cash-and-Stock Deal
IRDM•Rocket Lab will acquire Iridium Communications for $8 billion in a cash-and-stock deal valuing each share at $54, comprising $27 cash and Rocket Lab equity subject to a $67.50–$112.50 per-share collar. Iridium reported $871.7 million revenue and $495 million OEBITDA at a 57% margin in 2025 and serves 2.55 million subscribers.
1. Deal Structure and Valuation
Rocket Lab will acquire Iridium Communications in a transaction valuing Iridium at an enterprise value of about $8 billion. Each share is priced at $54, paid as $27 in cash and the remainder in Rocket Lab stock via an exchange ratio collar set between $67.50 and $112.50 per share.
2. Iridium Financial Profile and Subscriber Base
In 2025 Iridium generated $871.7 million in revenue and $495 million in OEBITDA, reflecting a 57% margin. The company operates a 66-satellite low-Earth orbit network serving 2.55 million active subscribers across government, defense, aviation, maritime and commercial markets.
3. Financing Plan and Timeline
A $3.6 billion 364-day senior secured bridge loan from Deutsche Bank and Wells Fargo will fund the cash portion, with remaining financing drawn from existing reserves and future capital arrangements. The acquisition is anticipated to close in mid-2027, pending shareholder and regulatory approvals following unanimous board endorsements.
