U.S. space corporations Rocket Lab will acquire satellite communications company Iridium Communications for about $8 billion (about 12.35 trillion won). Rocket Lab, which has strengths in small rocket launches and satellite manufacturing, aims to broaden its business into an integrated space services company through the acquisition.
Rocket Lab said on the 29th (local time) that it signed a definitive agreement to acquire all of Iridium's common shares in a cash-and-stock transaction at $54 per share. Iridium shareholders will receive $27 in cash per share held and Rocket Lab common stock calculated based on an exchange ratio. In this transaction, Iridium's corporate value was assessed at about $8 billion.
With the acquisition, Rocket Lab plans to build a vertically integrated space company encompassing launch vehicles, satellite manufacturing, spectrum, and on-orbit communications services. The company said it will combine Iridium's global satellite communications network, L-band spectrum, and an ecosystem of more than 500 partners to establish a structure to design, manufacture, launch, and operate its own satellite constellation.
Iridium is a corporations that provides voice and data communications and positioning, navigation and timing (PNT) services based on a low Earth orbit satellite network. It has provided services in fields where terrestrial communications networks are hard to reach, including aviation, shipping, government, defense, emergency response, and industrial worksites. It has more than 2.55 million subscribers worldwide. In 2025, revenue was $871.7 million, and adjusted operating earnings before amortization (OEBITDA) were $495 million.
Reuters analyzed that the transaction will be a turning point for Rocket Lab to shift away from a launch services–centric business toward owning both satellite networks and communications services. It was assessed as a strategy moving closer to the SpaceX and Starlink model, which holds both launch vehicles and satellite communications infrastructure.
Peter Beck, founder and CEO of Rocket Lab, said, "This transaction is a defining moment for the space industry and the beginning of a new era of strategic growth for Rocket Lab and Iridium," and noted that by combining Iridium's infrastructure and spectrum with Rocket Lab's launch and manufacturing capabilities, the companies will pioneer new space-based applications and services.
The acquisition is also expected to serve as a springboard for Rocket Lab to enter the device-to-device (D2D) satellite communications market. D2D is a service in which general devices such as smartphones connect directly to satellites without going through ground base stations. SpaceX Starlink and Globalstar are also expanding in the related market.
The transaction was unanimously approved by both companies' boards of directors. Completion is expected in mid-2027. However, customary closing conditions must be met, including approval by Iridium shareholders and regulatory approvals.
To fund the cash portion of the acquisition price, Rocket Lab secured a $3.6 billion, 364-day senior secured bridge loan commitment from Deutsche Bank and Wells Fargo. The remainder will be raised through existing cash and additional liability and equity financing.