Rocket Lab to acquire McLean-based Iridium in $8B deal

Rocket Lab, a California-based aerospace company, has entered into a definitive agreement to acquire McLean-based global satellite communications company Iridium Communications in a deal valued at $8 billion, according to a Monday announcement.

Under the cash and stock deal, Rocket Lab will acquire all outstanding shares of Iridium common stock for the equivalent of approximately $54 per share. Iridium stockholders will receive $27 in cash and the remaining value in Rocket Lab common stock.

The deal pairs Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum and 500-plus partner ecosystem to create a vertically integrated company that designs, builds, launches and operates its own satellite constellations.

The transaction is expected to be completed in mid-2027, subject to required regulatory approvals and approval of Iridium stockholders. The members of the boards of Iridium and Rocket Lab unanimously approved the deal.

Rocket Lab doesn’t expect business to continue as usual for Iridium following the acquisition. “Rather than simply continuing the Iridium network, Rocket Lab will build upon it to scale into untapped markets and pioneer new space-based services to the benefit of global customers,” according to a news release.

Iridium’s satellite network provides satellite communications and Positioning, Navigation and Timing services across government, defense, aviation, maritime and commercial markets, supporting more than 2.55 million active subscribers worldwide. It can serve areas where Global Positioning System (GPS) and other systems are unavailable.

The deal will also allow Rocket Lab to support the development and deployment of Iridium’s next-generation constellation. This includes direct-to-device services, which allow smartphones or other devices to connect with satellites in orbit in situations where traditional cell towers aren’t available.

“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities,” Iridium CEO Matt Desch said in a statement.  “Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible.”

Deutsche Bank and Wells Fargo have provided commitments to Rocket Lab for a $3.6 billion short-term loan. Rocket Lab intends to fund the cash component of the deal through a combination of cash from its balance sheet and other financing sources, according to a news release.

Iridium did not immediately respond to a request for comment about how the deal will impact the company’s senior leadership.

In 2025, Iridium reported almost $871.7 million in total revenue, up 5% from 2024, and $114.37 million in net income, up 1.4% from 2024.

On April 23, Iridium reported first quarter revenue of $219.1 million, a 2% increase year-over-year. That consisted of $158 million of service revenue and $61 million of revenue related to equipment sales and engineering and support projects. Net income was $21.6 million for the first quarter, compared to $30.4 million for the same period in 2025 or about a 29% decrease.

In May, Iridium announced that it had entered into a definitive agreement to acquire the remainder of Aireon, a joint project it started in 2011, for $366.7 million. Currently, Iridium owns 39% of McLean-based Aireon, operator of the world’s only space-based Automatic Dependent Surveillance-Broadcast air traffic surveillance system, which provides real-time global air traffic information.

The company had about 975 full-time employees at the end of 2025.