Rocket Lab Corp. has agreed to acquire Iridium Communications Inc. in a transaction that values the satellite communications company at approximately $8 billion. Iridium shareholders will receive $27 in cash as well as Rocket Lab shares, for a combined value of $54 per share.
For most of its existence, Rocket Lab has focused on selling the tools of the space economy, including small rockets, satellite buses, and components for other missions. With this acquisition, the company is moving toward owning the infrastructure rather than simply selling the tools used by others.
The deal provides Rocket Lab with control over a satellite fleet and access to wireless resources, granting the company more firepower to compete against industry rivals such as SpaceX and Amazon.
Company representatives believe this will be one of the most transformative deals in the space industry.