Rocket Lab (NASDAQ: RKLB), a publicly-traded spaceflight company and notable rival to Elon Musk’s SpaceX, has struck a deal to acquire Iridium Communications (NASDAQ: IRDM), which operates a satellite network that enables communication for maritime, industrial, and government customers. 

• Rocket Lab will pay $54 per share for Iridium, half in cash and half in stock, valuing the satellite operator at $8bn. It has lined up $3.6bn in debt financing to fund most of the cash payment. 

Acquiring Iridium puts Rocket Lab in a better position to become a full-fledged space company, offering both rocket launch, spacecraft manufacturing, and satellite communication services, just like industry leader SpaceX. 

Iridium’s low-earth orbit (LEO) satellites power voice and data communication for ships, remote research stations, military personnel, offshore workers, and other customers. It earned a net profit of $114mn on $872mn in revenue in 2025.

In a statement announcing the acquisition, Rocket Lab said it plans to leverage Iridium’s global spectrum to launch an upgraded satellite fleet that will replace the current network. It’s a similar strategy deployed by Elon Musk’s SpaceX, which recently listed on the public markets. 

• Starlink, a SpaceX service that delivers internet connectivity through a satellite network, accounts for most of the company’s sales. Starlink brought in $11.4bn out of $18.7bn in total revenue in 2025. By comparison, just $4.1bn came from the rocket launch business, underscoring how lucrative a satellite communication service can be. 

Rocket Lab reported $602mn in revenue in 2025, compared to $436 million in 2024 and $245mn in 2023 (it reported a $198mn net loss in 2025). Designing and manufacturing spacecraft components brings in roughly 70% of sales, while roughly 30% comes from rocket launch services. Acquiring Iridium gives Rocket Lab another sizable revenue stream to drive long-term growth.

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