Rocket Lab (NASDAQ: RKLB) has secured full financing for its planned $8 billion acquisition of Iridium Communications (NASDAQ: IRDM), eliminating a significant funding overhang that had weighed on the deal.
The company completed a $1.94 billion at-the-market stock offering, selling approximately 29.3 million shares to equity investors in the open market.
Combined with available cash on hand and Iridium’s existing debt obligations, Rocket Lab confirmed it now has sufficient funding to cover the cash portion of the acquisition and all related expenses.
As a direct result of securing alternative financing, Rocket Lab has terminated the $3.6 billion bridge facility it had originally arranged with Deutsche Bank and Wells Fargo earlier this year.
That bridge loan, a 364-day temporary credit facility, had been committed when the Iridium acquisition was first announced in June to ensure the company had immediate access to capital to close the transaction.
Iridium’s lenders have agreed to allow its existing $1.775 billion term loan to remain in place following the acquisition, reducing Rocket Lab’s need for more expensive short-term debt.
RKLB shares were up approximately 2% in pre-market trading following the announcement, reflecting market relief at the removal of a key financing risk.
The acquisition represents a major strategic expansion for Rocket Lab, taking the company well beyond its core business of launching rockets and manufacturing spacecraft for clients.
Iridium operates a global low-Earth-orbit satellite communications network with more than 2.55 million subscribers, serving government, defense, aviation, maritime and commercial markets through its L-band spectrum.
Iridium generated $871.7 million in revenue and $495 million in operational EBITDA in 2025, giving Rocket Lab a substantial and profitable business to absorb upon deal close.
Rocket Lab CFO Adam Spice, speaking at World Space Business Week, said the acquisition would transform the company from a launch provider into a fully integrated space operator, adding that the combination would double the company’s size “overnight.”
The deal positions Rocket Lab to build satellites, launch them aboard its own rockets, and operate communications services through its own network, putting it in direct competition with AST SpaceMobile (NASDAQ: ASTS) and SpaceX.
Raymond James analyst Brian Gesuale said last week that the Iridium acquisition will offer significant upside for RKLB, though he cautioned investors against underestimating execution risks involved in such a large integration.
The acquisition is expected to close in mid-2027, giving the company roughly a year to complete regulatory approvals and transition planning before the two businesses formally combine.
RKLB stock has declined more than 17% so far in 2026, though that performance still outpaces peers including ASTS, which has fallen 28%, Intuitive Machines (NASDAQ: LUNR), down 22%, and Planet Labs (NYSE: PL), which has dropped 20.6%.
