Rocket Lab (NASDAQ: RKLB) shares surged 12% on Monday after the company revealed an $8 billion cash-and-stock acquisition of satellite communications giant Iridium Communications (IRDM). The deal, one of the largest consolidations in the commercial space industry, also sent Iridium’s stock up 21%, adding to a remarkable rally that had already more than doubled its value this year.
Under the terms, Iridium shareholders will receive $27 in cash plus Rocket Lab shares, totaling $54 per share—a 24.1% premium to the previous close. The transaction, expected to close by mid-2027, combines Rocket Lab’s launch vehicles and satellite manufacturing with Iridium’s global L-band network, licensed spectrum, and more than 2.5 million subscribers across government, defense, aviation, maritime, and commercial sectors.
The acquisition is Rocket Lab’s first of a public company and its largest deal to date. It follows a string of smaller buys aimed at expanding spacecraft manufacturing. The company stated the move provides a “shortcut” to overcoming challenges like spectrum access, infrastructure buildout, and customer acquisition—echoing SpaceX’s strategy with Starlink. Rocket Lab has secured a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo to finance the cash portion, with the remainder coming from cash on hand and additional debt or equity.
The news comes just days after Rocket Lab joined the Nasdaq-100, which generated a temporary demand spike from passive funds. Despite the recent sell-off across space stocks—including a 30% drop in SpaceX’s post-IPO value and declines in Planet Labs and Intuitive Machines—Rocket Lab’s business fundamentals remain strong. The company posted a record $200 million in quarterly revenue, up 63.5% year-over-year, and a $2.2 billion backlog covering over 70 missions. Analysts forecast $915 million in annual revenue, growing to $1.29 billion next year. However, valuation concerns linger with a forward price-to-sales ratio of 53. Meanwhile, Rocket Lab also recently won a $300 million NASA contract for two climate science missions, underscoring its expanding role in the space economy.
