- Rocket Lab gets rocket satellite spectrum and communications under one corporate roof
- Iridium brings 2.55 million subscribers and global satellite coverage capabilities
- Starlink could finally face competition in military satellite communications markets
Rocket Lab has agreed to acquire Iridium in a deal worth approximately $8 billion, creating one of the largest vertically integrated space companies in America.
The deal values Iridium shares at $54 each through a combination of cash payments and Rocket Lab shares issued to shareholders.
Both boards of directors unanimously approved the transaction, which is expected to close in mid-2027 pending shareholder and regulatory approval.
Rocket Lab now controls almost everything
The acquisition gives Rocket Lab access to Iridium’s low Earth orbit network, globally coordinated L-band spectrum and more than 500 partners worldwide.
Iridium currently supports more than 2.55 million subscribers using satellite communications, navigation services and emergency connectivity in commercial and government markets.
Rocket Lab already makes satellites and launch vehicles, while also developing the Neutron rocket for larger constellation deployment missions.
The combined activities will therefore design satellites, manufacture spacecraft, launch payloads and operate communications networks using entirely internal resources.
Rocket Lab believes that removing third-party launch providers will reduce deployment costs while ensuring orbital access as launch demand increases.
Iridium generated revenue of $871.7 million in 2025 while reporting operating EBITDA of approximately $495 million and margins reaching 57%.
Rocket Lab has secured commitments for a $3.6 billion bridge loan facility through Deutsche Bank and Wells Fargo to support the financing.
The companies expect regulatory reviews and shareholder approvals to continue before the acquisition is completed in mid-2027.
Could this become a military communications alternative to Starlink?
“This is a defining moment for the space industry and the start of a new era of strategic and accelerated growth for Rocket Lab and Iridium,” said Sir Peter Beck, Founder and CEO of Rocket Lab.
“Iridium has set the benchmark for secure, safety-critical global satellite connectivity.”
Iridium’s direct device access capability, operating under the Iridium NTN Direct designation, covers denied, degraded and compromised network environments for national security purposes.
Rocket Lab’s work will now span spacecraft manufacturing, launch, spectrum and on-orbit communications via a unique proprietary network structure.
Unlike many communications providers, Rocket Lab would also possess the ability to reconstruct damaged constellations using its own launchers.
This makes it the most structurally complete rival to SpaceX’s Starlink ecosystem that the commercial space industry has ever seen.
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space capabilities,” said Matt Desch, CEO of Iridium.
“Success will come from those who are able to quickly introduce new innovations into space and sustain them over time as efficiently as possible. We are excited to be able to accelerate the next generation of IoT, aeronautical, maritime, PNT and national security capabilities.”
Starlink functioned as Ukraine’s de facto battlefield internet, coordinating drone strikes, troop movements and intelligence sharing in real time.
Iridium’s network already operates where GPS is actively jammed or denied, which describes conditions on the front lines of eastern Ukraine.
The Iridium NTN Direct capability, once fully developed, could give Ukraine – or any future conflict zone – a resilient, independent communications layer outside of Elon Musk’s direct control.
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