Rocket Lab announced on June 29 that it agreed to acquire Iridium Communications in a cash-and-stock transaction valued at approximately $8 billion [1, 2, 3, 4]. The deal values Iridium stock at $54 per share, with shareholders receiving $27 in cash plus Rocket Lab shares based on a set exchange ratio [1, 3].
Iridium operates a constellation of about 66 low-Earth orbit satellites that provide communications services to more than 2.5 million subscribers worldwide [2, 4]. Its network includes L-band spectrum that supports satellite-based communications and direct-to-device services, which Rocket Lab sees as highly valuable for expanding into government, emergency response, IoT, and navigation markets [2, 4].
Rocket Lab plans to combine its launch and manufacturing capabilities with Iridium’s satellite network and spectrum assets to build a competitive, vertically integrated space company. CEO Peter Beck called the acquisition a “shortcut” to owning a highly profitable satellite business with valuable spectrum that is “very difficult to come by.” He added, “They have millions of customers, and, of course, they’re a trusted government provider” [1, 2]. Beck said Rocket Lab is “not investing in hopes and dreams,” but acquiring a “highly profitable business” [2].
The deal aims to position Rocket Lab to challenge market leader SpaceX, whose Starlink satellite network broadly dominates the sector [1, 2, 4]. Rocket Lab has been acquiring other related companies, including Motiv, Mynaric, and Geost, as part of its satellite network expansion efforts in 2025 and 2026 [3].
Rocket Lab expects the acquisition to close in mid-2027 [1]. The company aims to pioneer next-generation space applications and deliver new satellite communication capabilities to millions of users worldwide [1].
Earlier in April 2026, Amazon acquired Globalstar for $11.6 billion in a separate move to compete with SpaceX Starlink [1, 3, 4].
