June 29 (Reuters) – Rocket Lab said on Monday it would acquire satellite communications provider Iridium Communications in a cash-and-stock deal valued at about $8 billion, marking one of the biggest consolidation moves in the commercial space industry.
Iridium shareholders will receive $27 in cash and Rocket Lab shares, with a combined value of $54 per Iridium share. The deal is expected to close in mid-2027.
The acquisition combines Rocket Lab’s launch vehicles and satellite-manufacturing business with Iridium’s global L-band satellite network, licensed spectrum and more than 2.5 million subscribers — spanning government, defense, aviation, maritime and commercial markets.
Rocket Lab’s first purchase of a publicly traded company is also its largest deal, following a series of smaller acquisitions aimed at expanding its spacecraft manufacturing and components business.
The deal gives Rocket Lab an immediate foothold in recurring satellite communications revenue while enabling it to deploy and replenish future constellations using its own rockets, reducing reliance on third-party launch providers.
SpaceX has followed a similar strategy, using its in-house rockets to build Starlink into the world’s largest satellite constellation.
The Elon Musk-led company raised about $86 billion in the world’s biggest initial public offering earlier this month and has plans to expand its communications satellite business while developing orbital AI computing infrastructure.
Rocket Lab has secured commitments for a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo to fund the cash portion of the acquisition. The company said it also plans to use cash on hand alongside additional debt and equity financing.
(Reporting by Akash Sriram in Bengaluru; Editing by Joyjeet Das)
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