Rocket Lab to Acquire Iridium for $8 Billion in Historic Space Industry Deal
Rocket Lab announced today it will acquire Iridium Communications for $54 per share in a cash-and-stock transaction, creating an $8 billion enterprise value deal that merges launch capabilities with satellite communications networks.
Major Space Industry Consolidation
Rocket Lab Corporation and Iridium Communications announced today they have entered into a definitive agreement under which Rocket Lab will acquire Iridium. Rocket Lab will acquire all outstanding Iridium shares for $54 per share in a cash and stock transaction, representing an enterprise value of approximately $8.0 billion.
Vertically Integrated Space Company
The acquisition will be one of the most transformative deals in the space industry, joining together two innovative American companies to play a leading role in the U.S. space economy. The acquisition merges Rocket Lab's launch capabilities and satellite manufacturing with Iridium's global satellite communications network, spectrum, and 500-plus strong partner ecosystem to create a competitive, vertically-integrated space company that designs, builds, launches, and operates its own constellations.
Strategic Rationale
Smaller players in the orbital economy are trying to catch up with market leader SpaceX. The move will combine Rocket Lab's launch capabilities and satellite manufacturing with Iridium's low-Earth orbit network, with Iridium shareholders receiving $27 in cash and a number of Rocket Lab shares.
Market Reaction
On the stock market today, Iridium shares jumped 22% after Rocket Lab announced it is acquiring the satellite communications company, while Rocket Lab shares rose 11% on the news.