Rocket Lab Corp. (Rocket Lab (RKLB)) and Iridium Communications Inc. (Iridium (IRDM)) announced Monday that they have entered into a definitive agreement under which Rocket Lab will acquire Iridium in a cash-and-stock transaction valued at approximately $8 billion in enterprise value.
Under the agreement, Iridium shareholders will receive $27 in cash plus Rocket Lab shares, subject to an exchange ratio collar, for a total implied value of $54 per share. The transaction is expected to close in mid-2027, pending shareholder and regulatory approvals.
Rocket Lab Expands Into Satellite Communications
Following the announcement, RKLB stock jumped nearly 10%. The deal would transform Rocket Lab into a more vertically integrated space company with launch, satellite manufacturing and communications capabilities.
The acquisition combines Rocket Lab's launch and satellite manufacturing business with Iridium's global satellite communications network, L-band spectrum and partner ecosystem. The combined company aims to design, build, launch and operate its own satellite constellations while expanding recurring communications revenue.
Rocket Lab said the deal provides an immediate entry into satellite Internet of Things, direct-to-device (D2D), positioning, navigation and timing (PNT), and safety-critical communications services. Iridium currently supports more than 2.55 million subscribers across government, defense, aviation, maritime and commercial markets.
"This is a defining moment for the space industry," Rocket Lab CEO Sir Peter Beck said. He said combining Iridium's satellite network and spectrum with Rocket Lab's launch and manufacturing capabilities will help the company develop next-generation space applications and expand into new markets.
Iridium CEO Matt Desch said the combination will accelerate innovation in IoT, aviation, maritime, PNT and national security services as demand for space-based communications continues to grow.
Financing And Transaction Details
Rocket Lab said the acquisition strengthens its vertical integration by combining launch services, spacecraft manufacturing, spectrum ownership and satellite communications.
The company expects to eliminate third-party launch costs for future constellation deployments while expanding into new defense and commercial markets.
Iridium generated $871.7 million in revenue and $495 million in OEBITDA in 2025, representing a 57% OEBITDA margin. Rocket Lab said those recurring cash flows will support future growth.
The boards of both companies unanimously approved the transaction. Rocket Lab has secured commitments for a $3.6 billion, 364-day senior secured bridge loan facility from Deutsche Bank and Wells Fargo.
The company plans to fund the cash portion through existing cash and additional debt and equity financing. As of March 31, 2026, RKLB held $1.205 billion in cash and cash equivalents.
Rocket Lab Technical Analysis
Despite Monday's rally, RKLB remains in a consolidation phase after reaching a May high. The stock is down 14.2% from its 20-day simple moving average of $107.66 and 12.7% below its 50-day SMA of $105.80.
However, the longer-term trend remains positive. Shares trade 5.2% above the 100-day SMA of $87.82 and 23.4% above the 200-day SMA of $74.89. The 50-day SMA also remains above the 200-day SMA, signaling a bullish long-term trend.
Momentum has weakened in recent weeks. The MACD remains below its signal line, suggesting buying pressure has cooled. A sustained move higher would likely require stronger follow-through from buyers.
Key resistance sits near $93, while major support is around $74, close to the 200-day SMA.
Price Action
Stock Price Activity: Iridium Communications shares were up 20.63% at $52.50 and Rocket Lab shares were up 10.01% at $93.00 during premarket trading on Monday, according to market data.
