Rocket Lab announced on Monday that it is acquiring the satellite communications company Iridium. The deal, made for cash and shares of Rocket Lab stock, values Iridium at about $8 billion.
The deal pairs the launch company, founded and led by Peter Beck, with a decades-old profitable satellite company whose network of 80 satellites in low-Earth orbit provides telecommunications services.
“We believe this will be one of the most transformative deals in the space industry,” Beck said in a short promotional video announcing the deal. “It’s the ultimate combination for growth.” //
Beck said the deal provides a shortcut for Rocket Lab to enter the “space applications” business—that is, providing space-based services rather than launching the satellites that offer voice, Internet, and other communication services to customers on Earth. This is where the majority of revenue in the space industry lies.
“This is a deal where one plus one equals three,” he said.
