Rocket Lab to Acquire Iridium for $8B, Secures $3.6B Bridge Loan
RKLB•Rocket Lab agreed to acquire Iridium Communications for $54 per share in an $8 billion cash and stock transaction funded by a secured $3.6 billion bridge loan. The acquisition adds Iridium’s 66-satellite LEO network, 2.55 million subscribers and $495 million in 2025 OEBITDA.
1. Deal Structure & Financing
Rocket Lab will pay $54 per Iridium share in a mix of $27 cash and stock subject to an exchange ratio collar between $67.50 and $112.50 per share. To fund the cash portion, the company secured a $3.6 billion 364-day senior secured bridge loan from Deutsche Bank and Wells Fargo.
2. Strategic Rationale & Synergies
The acquisition grants Rocket Lab control of Iridium’s 66-satellite low-Earth orbit network, globally licensed L-band spectrum and 2.55 million active subscribers across government, defense, aviation, maritime and commercial markets. Vertical integration is expected to eliminate third-party launch costs by deploying and replenishing the constellation with Rocket Lab rockets.
3. Financial Impact & Timeline
Iridium generated $871.7 million in revenue and $495 million in OEBITDA at a 57% margin in 2025. The deal, valued at an $8 billion enterprise value, has unanimous board approval and is slated to close in mid-2027 pending Iridium shareholder and regulatory approvals.
