Rocket Lab and Iridium Move Closer to Merger After Shareholder Approval
Rocket Lab (RKLB) has taken another major step toward acquiring Iridium Communications after shareholders overwhelmingly approved the deal with an 81% vote in favor. The acquisition, valued at $54 per share of Iridium stock and a total enterprise value of roughly $8 billion, was first announced in July but is now closer to completion following this shareholder approval. The merger will combine Rocket Lab’s launch capabilities and space systems with Iridium's global satellite communication network. Both companies expect the deal to close by mid-2024 after regulatory approvals are secured. Rocket Lab CEO Peter Beck emphasized that the combination would unlock new applications in space, while Iridium CEO Matt Desch highlighted shared innovation goals. Iridium’s unique low-earth orbit (LEO) satellite constellation provides 100% global coverage and is a key differentiator from competitors like Starlink. However, it operates at lower bandwidths compared to high-speed services offered by rivals such as SpaceX.
Topics: acquisition Iridium merger Rocket Lab