Rocket Lab to acquire Iridium in $8 billion deal

US companies Rocket Lab Corporation and Iridium Communications, a provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, have announced they have entered into a definitive agreement under which Rocket Lab will acquire Iridium. 

Rocket Lab will acquire all the outstanding shares of Iridium common stock for USD 54 per share in a cash and stock transaction. This represents an enterprise value for Iridium of approximately USD 8 billion, Rocket Lab said.

The deal in merges Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum, and 500-plus strong partner ecosystem to create a vertically-integrated space company that designs, builds, launches and operates its own constellations, delivering critical communications capability to users worldwide.

The transaction will give Rocket Lab an immediate foothold in space-based applications, including both proprietary and standards-based satellite Internet of Things (IoT) and direct-to-device (D2D), PNT, and critical safety-of-life services, the company said. 

“Iridium has built the gold standard in secure, safety critical global satellite connectivity. It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organizations who operate in the most remote off-the-grid locations,” said Sir Peter Beck, founder and CEO of Rocket Lab. “By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets.”

“We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT and national security capabilities, and pursue new innovative applications as part of Rocket Lab — a fully integrated, end-to-end space company,” said Matt Desch, CEO, Iridium.