Space Industry Transformed
Rocket Lab Acquires Iridium for $8 Billion, Creating Fully Integrated Space Business
Anonymous
Key Points
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The deal includes a collar on the stock portion: Iridium shareholders will receive $27 in cash plus Rocket Lab common stock calculated at an exchange ratio with a collar band ranging from $67.50 to $112.50 per share of Iridium stock.
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Enterprise value for Iridium is about $8.0 billion, and the deal values Iridium at roughly 16% of Rocket Lab’s current market value (Rocket Lab’s market capitalization around $48.94 billion).
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Iridium’s network serves more than 2.55 million active subscribers and works with more than 500 partner companies across government, defense, aviation, maritime, and commercial markets.
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The press materials describe the merger as creating a fully vertically integrated space powerhouse that combines Rocket Lab’s launch/manufacturing capabilities with Iridium’s network and spectrum to deliver own constellations and new space-based services.
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Iridium’s 2025 financials show revenue of about $871.7 million and EBITDA of $495 million (roughly a 57% EBITDA margin), underscoring the scale of the network being integrated.
Rocket Lab has agreed to buy Iridium Communications in a cash-and-stock deal worth about $8 billion, the company announced June 29, according to CNBC. The deal values Iridium at $54 per share — $27 in cash plus Rocket Lab stock — and is expected to close in mid-2027.
The acquisition transforms Rocket Lab from a launch and satellite-building company into a full-stack space business. It will own, build, launch, and operate its own satellite network — a model pioneered by SpaceX's Starlink. Rocket Lab's stock jumped 9% on the news. Iridium's soared 20%, CNBC reported.
What Iridium Brings to the Table
Iridium is not a startup. It runs a 66-satellite network in low Earth orbit and serves more than 2.55 million active subscribers, according to TipRanks. Its customers include the U.S. Department of Defense, airlines, shipping companies, and IoT device makers. More than 500 partner companies rely on its network.
The financial case is strong. Iridium posted $871.7 million in revenue in 2025 and $495 million in EBITDA — a margin of nearly 57%, per Yahoo Finance. That kind of steady cash flow is rare in the space industry, where most companies still burn money. For Rocket Lab investors, it signals a shift from a high-growth bet to a reliable earner.
How the $8 Billion Deal Is Structured
Iridium shareholders get $27 in cash per share, plus Rocket Lab common stock. The stock portion has a "collar" — a pricing band between $67.50 and $112.50 per Rocket Lab share — to protect both sides if Rocket Lab's stock moves sharply before the deal closes, according to TipRanks. The total enterprise value for Iridium is about $8 billion.
At the time of the deal, Rocket Lab's market cap stood at roughly $48.94 billion, meaning the $8 billion price tag equals about 16% of its own value. The deal still needs approval from shareholders of both companies, plus sign-off from U.S. regulators including the FCC and antitrust watchdogs, Splash247 reported.
Executives Call It a New Era for Space
Rocket Lab CEO Sir Peter Beck framed the deal in sweeping terms. "This is a defining moment for the space industry," he said. "We are no longer just a delivery service; we are the infrastructure of the modern world." Beck said the combined company will control "the entire value chain — from the pad to the palm of your hand."
Iridium CEO Matt Desch said the merger "unlocks unprecedented capabilities in IoT, aviation, maritime, PNT, and critical national security applications that neither company could achieve alone." PNT stands for Positioning, Navigation, and Timing — essentially a backup to GPS. Analysts at Quilty Space noted the deal "effectively de-risks Rocket Lab's future" by adding Iridium's reliable cash flow to its books.
Regulators, Critics, and What Comes Next
The deal has raised some eyebrows. Critics worry that one company controlling both a major launch provider and a major satellite network could squeeze out rivals. If other satellite makers depend on Rocket Lab to launch their hardware, a conflict of interest could emerge, according to Splash247. Regulators will likely scrutinize that dynamic during the review period, which runs from mid-2026 through early 2027.
On the national security side, the deal may face less friction. Iridium is a critical asset for the U.S. military. Keeping it under domestic, U.S.-allied ownership is seen as a positive by defense officials. If approved, the next Iridium satellite constellation — expected in the late 2020s — could be built and launched entirely in-house by Rocket Lab, sharply cutting future costs, per Yahoo Finance.
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