The deal to buy Iridium Communications by the aerospace company Rocket Lab is the largest takeover in its history, which completely changes the business model. According to Rocket Lab founder Peter Beck, this breakthrough allows for the creation of a vertically integrated space giant, able to compete with SpaceX and its Starlink network.
The total amount, including debt obligations, is approx $8 billion. Rocket Lab buys back Iridium shares for $54 per piece. It's on 24% above the market value before the announcement. In addition to its own funds, the company takes a loan commitment for $3,6 billion from Deutsche Bank and Wells Fargo.
The transaction is expected to complete in the middle 2027 year. It needs the approval of regulators and shareholders.
Rocket Lab is evolving from a simple supplier of rocket launches to a full-cycle company. Now she will design independently, will produce, will launch satellites and manage its own network.
Entering the Direct-to-Device market (D2D):Придбання відкриває Rocket Lab прямий доступ до комерційно привабливого ринку супутникового зв’язку безпосередньо зі звичайними смартфонами. Такий тренд консолідації вже підтвердив Amazon, by buying out Globalstar for $11 billion.
Ready infrastructure and frequency spectrum: The company receives a unique, weatherproof L-band frequency band and active grouping with 66 active satellites. This also includes the Aireon aviation tracking service and the PNT navigation system.
Stable cash flow and customer base: Instead of capital-intensive development of your own constellation "from scratch", Rocket Lab buys stable business with over 2,5 million subscribers (including the US Pentagon, commercial aviation and maritime sectors).
Immediately after the official announcement, the shares of both companies showed rapid growth on the stock exchanges: Shares of Iridium Communications soared to 22.1% and Rocket Lab shares rose within range 9.2% – 12%.
Source: https://spacenews.com