WASHINGTON (dpa-AFX) - Rocket Lab Corporation (RKLB), an aerospace manufacturer and launch service provider, said on Monday that it has inked a deal to buy Iridium Communications Inc. (IRDM), a voice, data, and satellite services provider, for $54 per share in cash and share, which represents an enterprise value of around $8 billion for Iridium.
Under the terms, Iridium stockholders will receive $27 in cash and shares of Rocket Lab. Rocket Lab intends to fund the cash portion through a combination of cash on hand and debt. Rocket Lab has received commitments for a $3.6 billion 364-day senior secured bridge-term-loan facility from Deutsche Bank and Wells Fargo.
The transaction is expected to be closed in mid-2027. The transaction will give Rocket Lab an immediate foothold in space-based applications, including both proprietary and standards-based satellite internet of things, direct-to-device, and others.
IRDM was up by 21.16% at $52.73 in the pre-market trade on the Nasdaq. RKLB was up by 4.31% at $88.18 in the pre-market trade on the Nasdaq.
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