- Rocket Lab wins rocket satellite spectrum and communications under one corporate roof
- Iridium brings 2.55 million subscribers and global satellite coverage capabilities
- Starlink may finally face competition across military satellite communications markets
Rocket Lab has agreed to acquire Iridium in a transaction valued at 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 unanimously approved the transaction, which is expected to close in mid-2027 pending shareholder and regulatory 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 over 2.55 million subscribers using satellite communications, navigation services and emergency connectivity across commercial and public markets.
Rocket Lab already manufactures satellites and launch vehicles, while developing the Neutron rocket for larger constellation deployment missions.
The combined company will therefore design satellites, manufacture spacecraft, launch payloads and operate communications networks using entirely in-house resources.
Rocket Lab believes that removing third-party launch providers will lower deployment costs while guaranteeing orbital access as launch demand increases.
Iridium generated revenue of $871.7 million in 2025, while reporting operational EBITDA of approximately $495 million and margins of 57%.
Rocket Lab secured commitments for a $3.6 billion bridge loan facility through Deutsche Bank and Wells Fargo to support financing.
The companies expect regulatory reviews and shareholder approvals to continue before the acquisition reaches completion 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, 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.”
Operating under the Iridium NTN Direct moniker, Iridium’s direct-to-device capability covers denied, degraded and compromised network environments for national security purposes.
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 rebuild 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 ground-based communications continue to converge, more critical services will depend on space-based capabilities,” said Matt Desch, CEO, 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, aerospace, maritime, PNT and national security capabilities.”
Starlink has served as Ukraine’s de facto Internet on the battlefield, coordinating drone strikes, troop movements and sharing real-time intelligence.
Iridium’s network is already operating where GPS is actively jammed or rejected, which describes conditions across the eastern Ukrainian front lines.
The Iridium NTN Direct capability, when fully developed, could provide Ukraine — or any future conflict zone — with a resilient, independent communications layer outside of Elon Musk’s direct control.
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