Rocket Lab Corporation and Iridium Communications Inc. announced today a definitive agreement under which Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction, implying an enterprise value for Iridium of approximately $8.0 billion.
The deal carries significant implications for the alternative PNT sector. Iridium’s globally harmonized L-band spectrum and low Earth orbit (LEO) satellite network provide what the companies describe as a resilient PNT architecture for applications where GPS and other GNSS are degraded or unavailable. The combined entity will be positioned to accelerate development of Iridium’s next-generation constellation, including direct-to-device services targeted at U.S. national security and emergency response use cases in denied and degraded environments.
Iridium currently supports more than 2.55 million active subscribers across government, defense, aviation, maritime, and commercial markets, and generated $871.7 million in revenue in 2025 with a 57% OEBITDA margin.
“Iridium has built the gold standard in secure, safety critical global satellite connectivity,” said Sir Peter Beck, founder and CEO of Rocket Lab. “By marrying Iridium’s deep heritage, trusted infrastructure, and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets.”
Iridium CEO Matt Desch cited the convergence of space and terrestrial communications as driving the rationale: “Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible.”
The transaction, unanimously approved by both boards, is expected to close in mid-2027, subject to stockholder approval and regulatory clearances. Rocket Lab has secured a $3.6 billion senior secured bridge term loan facility from Deutsche Bank and Wells Fargo to fund the cash component.
