LONG BEACH, Calif. & MCLEAN, Va.—Rocket Lab Corporation has inked an agreement to acquire Iridium Communications Inc., a leading provider of global voice, data, and positioning, navigation, and timing (PNT) satellite services, for about $8 billion.
The deal is a notable example of consolidation in the space industry, merging Rocket Lab's launch capabilities and satellite manufacturing with Iridium's global satellite communications network, spectrum, and 500-plus strong partner ecosystem to create a vertically-integrated space company that designs, builds, launches, and operates its own constellations and delivers critical communications capability to millions of users worldwide.
Iridium’s mobile satellite network is widely used by journalists who are reporting from war zones, areas impacted by natural disasters and other locations where regular mobile or terrestrial communications may not be available.
In recent years, however, it has faced increased competition from providers like Elon Musk's SpaceX's Starlink division. The deal could help it expand its operations and competitive position.
The transaction will give Rocket Lab an immediate foothold in space-based applications, including both proprietary and standards-based satellite Internet of Things (IoT) and direct-to-device (D2D), PNT, and critical safety-of-life services.
Rocket Lab reported that rather than simply continuing the Iridium network, Rocket Lab will build upon it to scale into untapped markets and pioneer new space-based services.
Iridium’s globally harmonized L-band spectrum and low Earth orbit (LEO) satellite network provide a secure, resilient foundation for reliable satellite communications and PNT services across government, defense, aviation, maritime, and commercial markets. Supporting more than 2.55 million active subscribers worldwide, Iridium delivers highly reliable, weather-resilient connectivity and an alternative PNT architecture for applications where Global Positioning Systems (GPS) and other Global Navigation Satellite Systema (GNSS) are degraded or unavailable.
"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," said Sir Peter Beck, founder and CEO of Rocket Lab in a statement. "Iridium has built the gold standard in secure, safety critical global satellite connectivity. It is relied upon by maritime fleets, the aviation industry, governments, and heavy industrial organizations who operate in the most remote off-the-grid locations. 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."
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilities,” added Matt Desch, CEO, Iridium. “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, and national security capabilities, and pursue new innovative applications as part of Rocket Lab - a fully integrated, end-to-end space company. That’s an incredible opportunity for our customers, partners, employees, and stockholders.”
