NEW YORK, June 29, 2026, 11:13 EDT. Rocket Lab said it will buy Iridium in an $8 billion deal, moving the satellite race into a new phase as RKLB eyes cash flow from IRDM’s network.
- Rocket Lab said it will acquire Iridium in a cash and stock deal valuing the satellite operator at roughly $8 billion, paying $54 per share.
- Iridium reported $495.3 million in 2025 OEBITDA. That’s roughly 82% of Rocket Lab’s 2025 revenue, based on company numbers and basic math.
- Stock collar is key here. If Rocket Lab’s deal VWAP drops under $67.50, Iridium shareholders won’t see the headline $54, they’ll get less.
Rocket Lab Corporation NASDAQ:RKLB said it will acquire Iridium Communications Inc. NASDAQ:IRDM in a cash-and-stock deal that puts an $8 billion tag on the satellite operator. Investors will probably notice Rocket Lab paying up with its high-valuation public shares to pick up a company already turning out operating profits. Iridium shareholders will be paid $54 a share, split $27 in cash and the rest in Rocket Lab shares, the companies said.
Rocket Lab traded at $92.19 in New York morning deals, up 9.0%. Iridium changed hands at $52.61, up 20.9%. Space Exploration Technologies Corp., SpaceX NASDAQ:SPCX, rose 1.6%. Iridium was still 2.6% below the $54 notional offer, leaving a gap for stock, timing and approval risk.
The denominator matters here. Rocket Lab posted $601.8 million in revenue for 2025, with an adjusted EBITDA loss at $101.2 million. Iridium came in higher, pulling $871.7 million in revenue and $495.3 million OEBITDA. That puts Iridium’s revenue at 1.45 times Rocket Lab’s, and its OEBITDA is 82% of Rocket Lab’s 2025 revenue.
| 2025 measure | Rocket Lab | Iridium | Investor read |
|---|---|---|---|
| Revenue | $601.8 mln | $871.7 mln | Iridium at 1.45 times Rocket Lab |
| EBITDA-type measure | Adjusted EBITDA loss of $101.2 mln | OEBITDA of $495.3 mln | Cash-flow profile shifts |
| Net income | Loss of $198.2 mln | Profit of $114.4 mln | Profit mix will change at closing |
| Reported service revenue | $230.2 mln | $634.0 mln | Iridium at 2.75 times Rocket Lab |
The deal looks different based on how you measure it. Rocket Lab’s latest market value was near $55.93 billion, or about 93 times 2025 revenue. Iridium’s enterprise value stands at 9.2 times its 2025 revenue and 16.2 times OEBITDA. It’s not an even EV-to-EV comparison, but this explains why equity works for Rocket Lab here.
Rocket Lab CEO Sir Peter Beck told Reuters Iridium runs “a very profitable business” and has “the all-important spectrum.” The deal puts Rocket Lab into satellite communications with customers, licenses and capacity already on hand, instead of having to start from scratch. Reuters
Rocket Lab’s investor presentation listed 66 working satellites, 14 spares in orbit, global spectrum licenses, 2.55 million subscribers, a workforce of about 1,000, and projected a 57% OEBITDA margin for 2025.
The stock collar isn’t the headline part of the deal. Rocket Lab’s share payout stays pegged at around $27 if the 10-day VWAP in the run-up to closing falls between $67.50 and $112.50. If it’s under $67.50, Iridium holders get 0.4000 Rocket Lab share each. Above $112.50, they get 0.2400 per share. With Rocket Lab trading at $92.19 on Monday, the stock piece would work out to about 0.293 Rocket Lab share if the VWAP lands there at close.
| Rocket Lab deal-price VWAP | Exchange ratio | Stock leg value | Total value with $27 cash |
|---|---|---|---|
| $60.00 | 0.4000 | $24.00 | $51.00 |
| $67.50 | 0.4000 | $27.00 | $54.00 |
| $92.19 illustrative | 0.2929 | $27.00 | $54.00 |
| $112.50 | 0.2400 | $27.00 | $54.00 |
| $130.00 | 0.2400 | $31.20 | $58.20 |
The collar is part of what’s behind the spread. Iridium holders are selling the network but still on the hook for Rocket Lab’s price swings up to close. The 8-K lists a majority of Iridium shares needed, HSR waiting period, FCC sign-off, plus more overseas, satellite and telecom okays. The deal’s outside date can go as far as Dec. 28, 2027.
Funding looks set. Rocket Lab has lined up a $3.6 billion, 364-day senior secured bridge loan from Deutsche Bank AG NYSE:DB and Wells Fargo & Co. NYSE:WFC. Last quarter, Rocket Lab reported over $2 billion in liquidity after an at-the-market offering, with cash and cash equivalents sitting at $1.21 billion as of March 31.
Beck said in a company statement that Iridium is the “gold standard in secure, safety critical global satellite connectivity.” Matt Desch, CEO of Iridium, said the deal will let the company “bring new innovations to space quickly.”
Rocket Lab isn’t just getting a Starlink rival with this deal. It’s picking up L-band spectrum, access to a government customer base and existing subscribers, which could bring in satellite revenue faster. The risk is that if closing drags on, Rocket Lab’s share price—not Iridium’s operations—could end up driving the final terms.
