BREAKINGVIEWS-An $8bln deal launches a poor man’s SpaceX

Iridium Communications Inc.
Rocket Lab

Iridium Communications Inc.

IRDM

0.00

Rocket Lab

RKLB

0.00

The author is a Reuters Breakingviews columnist. The opinions expressed are his own.

By Robert Cyran

NEW YORK, June 29 (Reuters Breakingviews) - Rocket Lab’s space transit business is growing, while Iridium’s satellites throw off cash. Combining them should strengthen both sides, as with Elon Musk’s industry titan. The problem is the astronomical difference in scale: pipsqueaks will struggle to reach escape velocity.

Full view will be published shortly.

Follow Robert Cyran on Bluesky.

CONTEXT NEWS

Rocket Lab said on June 29 that it had agreed to buy Iridium Communications in an $8 billion deal including debt. The acquirer will pay $54 a share in cash and stock, a 24% premium to where Iridium’s shares closed on June 26, the last day of trading before the deal was announced.

Rocket Lab produces space-launch vehicles and manufactures satellites. Iridium provides communication services via satellite to more than 2.5 million subscribers.

Deutsche Bank, Wells Fargo and PJT Partners provided financial advice to Rocket Lab. Evercore served as advisor to Iridium.


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.