- Rocket Lab is buying Iridium in an $8 billion cash-and-stock deal
- The deal pushes Rocket Lab deeper into space-based communications, pairing its launch and satellite manufacturing business with Iridium’s satellites
- The real prize here is spectrum, with Rocket Lab CEO Peter Beck saying Iridium’s global L-band holdings are key to scaling critical communications services
Rocket Lab Corporation is acquiring Iridium Communications in a deal valued at $8 billion, uniting Rocket Lab’s launch and satellite manufacturing capabilities with Iridium’s global satellite network and L-band spectrum.
Specifically, Rocket Lab will acquire all the outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction. The transaction is expected to be completed in mid-2027, subject to the customary closing conditions and regulatory approvals.
Iridium’s satellites are used by maritime fleets, the aviation industry, governments and industrial organizations that operate in some of the most remote locations. Rather than simply continuing the Iridium network, Rocket Lab said it intends to build upon it to scale into untapped markets and pioneer new space-based services to the benefit of global customers.
Rocket Lab founder and CEO Peter Beck called it a “defining moment” for the space industry and the start of a new era of strategic, accelerated growth for Rocket Lab and Iridium.
“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,” he said in a statement. “We will go far beyond maintaining a legacy; we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers."
Iridium CEO Matt Desch said as the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities.
"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," Desch said in a statement.
Iridium’s L-band spectrum
One of the key pieces of the deal is Iridium’s L-band spectrum. In a post on social media, Beck explained why the acquisition of Iridium is so crucial.
"If you want to do large scale communications globally, you must have spectrum. And for us, this deal really enables us to accelerate our entry into this market," he said.
The reason Iridium’s spectrum is incredibly important is it’s global and it’s L-band. The L-band is important “because if you want to do safety critical comms, you need that band to penetrate through weather and harsh conditions. It is a band that ensures that you can always be connected," he said.
“If you want to do big things in space, you need spectrum,” he added, noting that other big companies are seeing the same thing: Amazon is acquiring Globalstar for about $11.57 billion and SpaceX is buying spectrum from EchoStar.