Rocket Lab will acquire all outstanding shares of Iridium common stock in a cash and stock transaction that will represent an enterprise value for Iridium of approximately $8bn.
Aerospace manufacturer Rocket Lab has announced plans to acquire satellite services platform Iridium Communications.
Under the ‘definitive agreement’, Rocket Lab will acquire all outstanding shares of Iridium common stock for $54 per share in a cash and stock transaction, representing an enterprise value for Iridium of approximately $8bn.
Initially established by Motorola in the 1980s, Iridium developed one of the world’s first global low-Earth orbit satellite communications networks and in the 1990s, after a financial decline, reestablished itself as a provider of communications services to government, aviation, maritime and industrial consumers.
The acquisition will merge Rocket Lab’s launch capabilities and satellite manufacturing with Iridium’s global satellite communications network, spectrum, and more than 500-strong partner ecosystem, combining their reach in the US space ecosystem and creating a potential rival to Elon Musk’s SpaceX.
SpaceX recently raised a record-breaking $75bn in its IPO debut, effectively ‘setting the scene’ for AI rivals Anthropic and OpenAI as they also prepare to make their organisations public.
Commenting on the acquisition, Peter Beck, the founder and CEO of Rocket Lab, said, “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.
“By marrying Iridium’s deep heritage, trusted infrastructure and highly sought-after spectrum with Rocket Lab’s extensive and proven launch and manufacturing capabilities, we have the capability to unlock entirely new markets.
“We will go far beyond maintaining a legacy – we are going to build upon it to pioneer next-generation space applications and deliver sought-after capabilities to existing and new customers.”
Iridium’s CEO Matt Desch added, “As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities. Success will come from those who can bring new innovations to space quickly and sustain them over time as efficiently as possible.
“We’re excited about being able to accelerate the next generation of IoT, aviation, maritime, PNT (position, navigation, timing) and national security capabilities, and pursue new innovative applications as part of Rocket Lab.”
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