- Rocket Lab obtains spectrum and satellite communications for rockets under one corporate roof
- Iridium brings 2.55 million subscribers and global satellite coverage capabilities
- Starlink May Finally Face Competition in Military Satellite Communications Markets
Rocket Lab agreed to acquire Iridium in a transaction worth approximately $8 billion, creating one of the largest vertically integrated space companies in the United States.
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 regulatory and shareholder approvals.
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 the 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 business will therefore design satellites, manufacture spacecraft, launch payloads and operate communications networks using entirely internal resources.
Rocket Lab believes that eliminating third-party launch providers will reduce deployment costs while ensuring orbital access as launch demand increases.
Iridium generated revenue of $871.7 million during 2025 and reported operating EBITDA of approximately $495 million and margins reaching 57%.
Rocket Lab 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 beginning 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 built the gold standard in secure, safety-critical global satellite connectivity.”
Iridium’s direct-to-device capability, operating under the Iridium NTN Direct designation, covers network environments that are denied, degraded and compromised for national security reasons.
Rocket Lab’s work will now cover spacecraft manufacturing, launch, spectrum and in-orbit communications through a single proprietary network structure.
Unlike many communications providers, Rocket Lab would also have the ability to replenish damaged constellations using its own launch vehicles.
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 can bring new innovations to space quickly and sustain them over time as efficiently as possible. We are excited to be able to accelerate the next generation of IoT, aviation, maritime, PNT and national security capabilities.”
Starlink has served as the de facto Internet on the Ukrainian battlefield, coordinating drone strikes, troop movements and intelligence sharing in real time.
Iridium’s network already operates where GPS is actively blocked or denied, describing 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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