Jun. 29 at 3:47 PM
$RKLB agreeds to buy satellite operator
$IRDM in a cash-and-stock deal that values the target at roughly
$8B
The acquisition gives Iridium stockholders an estimated
$54/share, split b/n
$27 in cash & a variable number of Rocket Lab shares set by an exchange ratio, subject to a collar. That ratio carries a collar banded b/n
$67.50-
$112.50, a structure meant to protect both sides from swings in Rocket Lab’s stock price before the deal closes
Rocket Lab has secured commitments for a
$3.6B bridge loan from
$DB &
$WFC and plans to fund the cash portion thru a mix of balance sheet cash and additional debt & equity
For Rocket Lab, the goal behind the transaction is vertical integration. The company already builds rockets and spacecraft, & Iridium supplies the missing piece, an operating satellite network w/ paying customers. Iridium runs a low Earth orbit network of 66 satellites w/ 14 on-orbit spares serving more than 2.55M active subs across aviation, maritime, govt, defense & commercial markets
Iridium posted
$871.7M in revs in FY25 & op EBITDA of
$495M, a margin of 57%, giving Rocket Lab a recurring cash flow stream it has never had before
Both boards have unanimously approved the transaction & Iridium directors have signed a voting agreement in support of the deal. The companies expect to close in mid-2027, pending approval from Iridium stockholders & regulators
Breakup Fee:
$223.62M
