Rocket Lab seals $8B Iridium acquisition deal

Rocket Lab will acquire Iridium Communications in an $8 billion cash-and-stock deal, strengthening its position in the fast-growing satellite market and increasing competition with SpaceX. 

Following the announcement, Iridium shares surged nearly 21%, while Rocket Lab gained almost 7%. The deal is expected to close by mid-2027. 

The acquisition combines Rocket Lab’s launch and satellite manufacturing business with Iridium’s global satellite network and valuable wireless spectrum.

Iridium currently operates 66 low-Earth orbit satellites serving government agencies, ships, mining companies, and other customers worldwide. It generated $114 million in net income on $872 million in revenue last year.

The deal also reflects growing consolidation in the satellite industry as companies compete with SpaceX’s expanding Starlink network.