Iridium Communications announced Thursday it has entered into a definitive agreement to acquire the remaining stake in Aireon LLC, the space-based ADS-B air traffic surveillance operator that has flown as a hosted payload on the Iridium constellation since 2019.
Iridium is an existing owner of Aireon and will acquire the remaining 61% of equity interests for a purchase price of approximately $366.7 million from NAV CANADA, AirNav Ireland, ENAV, NATS, and Naviair.
The purchase price will be paid in two equal installments, half at closing and the remainder one year later. Iridium will also assume approximately $155 million of Aireon debt as part of the transaction. The deal is targeted to close in early July.
The Aireon system, certified by the European Union Aviation Safety Agency, currently tracks an average of 190,000 flights per day with 100% global coverage, with ANSPs covering more than 50% of global airspace relying on Aireon data. The system captures ADS-B signals broadcasting aircraft identity, position, altitude, speed, and heading in real time.
Taking over Aireon would give Iridium full control of a business that includes GPS jamming and spoofing detection, alongside real-time and historical flight data. Iridium also boasts PNT capabilities designed to keep GPS-dependent systems functioning in contested environments, and its value-added manufacturers in aviation are already exploring ways to bring an additional layer of safety to the flight deck by using Iridium PNT in avionics to complement and protect GPS.
Iridium frames the acquisition as a defining step in its strategy to provide the foundational architecture for global aviation safety, consolidating space-based surveillance, safety communications, PNT, and operational data onto a single network. Among the next steps Iridium has indicated is the future introduction of space-based VHF communications. A space-based VHF initiative, aimed at relieving VHF congestion using satellite links, had been a project Iridium and Aireon had each been pursuing on parallel tracks.
Iridium expects Aireon to add at least $100 million of consolidated annual service revenue and $30 million of OEBITDA. Aireon’s total revenue grew at a 10% compound annual growth rate over the past three years. The transaction also extends commercial partnerships with NAV CANADA and NATS through 2035 and beyond.
Aireon will continue business-as-usual operations in the near term, with no planned changes to business strategy.
