Rocket Lab has agreed to acquire Iridium Communications for approximately $8bn in a cash-and-stock deal, paying $54 per share. The acquisition gives Rocket Lab access to Iridium's global low-Earth-orbit constellation, valuable L-band spectrum, and an established customer base spanning government, maritime, aviation, and emergency response sectors. The strategic rationale mirrors SpaceX's Starlink model: vertical integration from launch to satellite operations to end customers. Iridium's direct-to-device capabilities are seen as increasingly critical for US national security and emergency response. The deal is expected to close in mid-2027, pending regulatory and shareholder approvals. Rocket Lab reported record Q1 2026 revenue of $200m, up 64%, providing momentum for the move, though integration risks and a cautious space investment climate remain significant challenges.
