Rocket Lab NASDAQ:RKLB rose 11.78% in premarket after the company announced a definitive agreement to acquire Iridium Communications NASDAQ:IRDM for $54 per share in a cash and stock transaction, implying an enterprise value of approximately $8 billion. Iridium shareholders will receive $27 in cash and Rocket Lab stock via an exchange ratio subject to a collar banded between $67.50 and $112.50 per RKLB share. Iridium shares rose 20.65% in premarket. Rocket Lab has secured a $3.6 billion 364-day senior secured bridge loan from Deutsche Bank NYSE:DB and Wells Fargo NYSE:WFC to fund the cash component.
The deal gives Rocket Lab immediate access to Iridium's global LEO satellite network, globally coordinated L-band spectrum, and more than 2.55 million active subscribers across government, defense, aviation, maritime, and commercial markets. Iridium generated $871.7 million in revenue and $495 million in OEBITDA at a 57% margin in 2025. The combined company would design, build, launch, and operate its own constellations, eliminating third-party launch costs for constellation deployment while capturing launch margin internally.
The transaction is expected to close in mid-2027, subject to Iridium stockholder approval and regulatory clearance. Both boards have unanimously approved the deal.