Rocket Lab announced on Monday that it will acquire satellite communications company Iridium Communications in a deal valued at about $8 billion. The transaction involves cash and Rocket Lab stock. The move pairs the launch provider with an established operator of 80 satellites in low-Earth orbit.
Rocket Lab founder and chief executive Peter Beck described the deal as transformative for the space industry. He said it combines Rocket Lab's launch access and spacecraft manufacturing with Iridium's operational constellation, valuable spectrum, millions of customers, and profitability.
Iridium chief executive Matt Desch said the acquisition will accelerate new services in areas including IoT, aviation, maritime, positioning, navigation, and timing, and national security. Iridium currently serves 2.55 million customers worldwide and holds substantial L-band spectrum.
The deal positions Rocket Lab to compete more directly with SpaceX's Starlink and other large satellite networks. Rocket Lab has made smaller acquisitions in recent years to expand its capabilities, but this transaction is significantly larger.
Rocket Lab plans to build on Iridium's existing network while developing its Neutron medium-lift rocket, which remains scheduled for a possible debut in the fourth quarter of this year.
