Rocket Lab is buying Iridium for $8 billion in a cash-and-stock deal worth $54 per share. Shareholders will receive $27 in cash plus additional Rocket Lab common stock. The company now sees itself as a “vertically integrated space company that designs, builds, launches, and operates its own constellations, delivering critical communications capability to millions of users worldwide.” In essence, therefore, Rocket Lab is now a SpaceX alternative. Given Elon Musk‘s increasingly visible political profile, Rocket Lab may be seen by many firms and individuals as a more responsible and safer partner. Iridium currently has 2.55 million active subscribers for L-band spectrum and LEO-based data and voice direct-to-device services. The hope here is to use Rocket Lab’s launch capabilities to extend the Iridium network, its constellation, and its capabilities to a level that rivals SpaceX.
Rocket Lab launches “IoT 4 You & Me” Mission. Image courtesy of Rocket Lab.
Sir Peter Beck, founder and CEO of Rocket Lab, said,
“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- 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.”
Iridium CEO Matt Desch added,
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilitie. 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.”
The company wants to be an end-to-end space firm with captive launch capabilities and its own path to end users, constellation, spectrum and network. This should materially add to Rocket Lab’s revenue and profile. The company previously was an interesting potential partner for governments, and now it will be an essential one. Just days ago, SpaceX also bought around $20 billion in spectrum, meaning it is likely to enter the US mobile market directly
Rocket Lab is buying Iridium for $8 billion in a cash-and-stock deal worth $54 per share. Shareholders will receive $27 in cash plus additional Rocket Lab common stock. The company now sees itself as a “vertically integrated space company that designs, builds, launches, and operates its own constellations, delivering critical communications capability to millions of users worldwide.” In essence, therefore, Rocket Lab is now a SpaceX alternative. Given Elon Musk‘s increasingly visible political profile, Rocket Lab may be seen by many firms and individuals as a more responsible and safer partner. Iridium currently has 2.55 million active subscribers for L-band spectrum and LEO-based data and voice direct-to-device services. The hope here is to use Rocket Lab’s launch capabilities to extend the Iridium network, its constellation, and its capabilities to a level that rivals SpaceX.
Rocket Lab launches “IoT 4 You & Me” Mission. Image courtesy of Rocket Lab.
Sir Peter Beck, founder and CEO of Rocket Lab, said,
“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- 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.”
Iridium CEO Matt Desch added,
“As the worlds of space and terrestrial communications continue to converge, more critical services will depend on space-based capabilitie. 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.”
The company wants to be an end-to-end space firm with captive launch capabilities and its own path to end users, constellation, spectrum and network. This should materially add to Rocket Lab’s revenue and profile. The company previously was an interesting potential partner for governments, and now it will be an essential one. Just days ago, SpaceX also bought around $20 billion in spectrum, meaning it is likely to enter the US mobile market directly