US space company Rocket Lab announced on Monday its intention to acquire satellite communications operator Iridium in a cash-and-stock deal valued at approximately $8 billion. This move is designed to create a fully integrated space enterprise with capabilities spanning satellite manufacturing, launch, and in-orbit operations, positioning it to directly challenge SpaceX's dominance in the commercial space sector.

Under the terms of the agreement, Rocket Lab will acquire all outstanding shares of Iridium for $54 per share, with $27 to be paid in cash and the remainder in Rocket Lab stock. The transaction is anticipated to be completed by mid-2027.

Iridium operates a global mobile communications network consisting of 66 low-Earth orbit satellites, boasting over 2.55 million active users. Its services cater to government, defense, aviation, maritime, and remote industrial sectors. Rocket Lab founder and CEO Peter Beck stated that this acquisition represents a pivotal moment for the space industry, marking the company's strategic evolution from a launch service provider into an integrated space applications enterprise.

Currently, SpaceX is rapidly expanding its market share through its Starlink satellite internet service. In a related industry move, Amazon acquired Globalstar in April of this year to develop its own satellite internet business. Rocket Lab's acquisition is seen as another significant step in the ongoing consolidation within the space sector. The combined company will retain the Iridium brand and network, with plans to leverage this foundation to develop next-generation satellites and emerging services such as direct-to-device communications.

To support the transaction, Rocket Lab has secured a commitment for a $3.6 billion bridge loan from Deutsche Bank and Wells Fargo. Iridium reported revenue of $871.7 million for 2025, and its stable recurring income is expected to significantly enhance Rocket Lab's financial structure.