Rocket Lab to Acquire Iridium in $8 Billion Space Industry Shakeup

The transaction, which values Iridium shares at $54 each, marks a significant consolidation in the U.S. space economy. By combining Rocket Lab’s launch vehicles with Iridium’s L-band spectrum and low Earth orbit satellite network, the company aims to control the entire value chain—from designing and building satellites to launching them and managing on-orbit communications. This integration is expected to eliminate third-party launch costs while securing a stable revenue stream from Iridium’s 2.55 million active subscribers.

Sir Peter Beck, founder and CEO of Rocket Lab, noted that the deal allows the company to move beyond traditional launch services into a broader role as a provider of critical, secure satellite applications. The combined entity will focus on scaling direct-to-device services and enhancing resilient communications for government, defense, and maritime sectors. Iridium CEO Matt Desch added that the partnership positions the company to accelerate innovations in IoT and positioning, navigation, and timing (PNT) services.

To fund the cash portion of the acquisition, Rocket Lab has secured a $3.6 billion bridge loan facility from Deutsche Bank and Wells Fargo. The deal, which has received unanimous approval from the boards of both companies, is expected to close in mid-2027, pending regulatory and stockholder approvals. Rocket Lab plans to use Iridium’s robust financial profile—which reported $871.7 million in revenue for 2025—to support long-term growth and the deployment of next-generation constellations.