Key Highlights

● Shareholders approved the cash-and-stock sale to Rocket Lab on 25 September 2026, with about 99.6% of votes cast in favour.

● Each Iridium share is to receive $27 in cash plus Rocket Lab stock under a collar, for a notional total of $54, a 24.1% premium to the 26 June close.

● Second-quarter Revenue rose 4% to $225.2 million, operational EBITDA slipped 2% to $119.1 million, and Net Income was $9.7 million against $22.0 million a year earlier.

● Closing is targeted by mid-2027, with FCC consent to transfer Iridium's licenses among the remaining conditions.

Iridium Communications (NASDAQ:IRDM), operator of a 66-satellite low-Earth-orbit network used for voice, data and Internet of Things services, has cleared a major hurdle in its pending sale to Rocket Lab (NASDAQ:RKLB). Shareholders approved the cash-and-stock transaction on 25 September 2026, leaving regulatory steps as the principal remaining conditions. Iridium is a constituent of the S&P SmallCap 600, which it joined in December 2025 after moving down from the S&P MidCap 400, and it is part of the Nasdaq Composite. For index funds, a completed deal would eventually mean the stock’s removal.

Latest Company Context

Rocket Lab announced the agreement on 29 June 2026, valuing Iridium at about US$8 billion. Each Iridium share is to receive US$27 in cash plus Rocket Lab common stock under a collar-adjusted exchange ratio, for a notional total of US$54, a 24.1% premium to the 26 June closing price. According to a trade publication, about 99.6% of votes cast supported the deal, and antitrust waiting periods lapsed in August. Rocket Lab completed a roughly US$1.94 billion Equity offering to fund the cash portion and ended a US$3.6 billion bridge facility.

Separately, Iridium reported second-quarter results on 22 July: revenue rose 4% to US$225.2 million, operational EBITDA slipped 2% to US$119.1 million, and net income was US$9.7 million. The company withdrew financial guidance because of the pending transaction. Rocket Lab chief executive Peter Beck has described the combination as the start of a new era of accelerated growth, positioning the merged group to offer launch, spacecraft Manufacturing and satellite services under one roof. It is Rocket Lab’s first Acquisition of a publicly traded company.

Key Business and Index Drivers

Iridium’s appeal to Rocket Lab lies in its global coverage, government relationships and recurring service revenue, which made up 72% of second-quarter sales. Billable subscribers grew 6% to 2.627 million, with commercial IoT up 9%. Iridium completed its acquisition of Aireon, the space-based aircraft surveillance provider, on 2 July 2026 for about US$366.7 million, and launched the 9604 tri-mode module combining satellite, LTE-M cellular and GNSS positioning.

Its standards-based NTN Direct service, intended to connect ordinary devices to satellites, is planned for later in 2026. Leverage is notable: gross term Loan Debt was about US$1.8 billion against cash of US$184.2 million, or net leverage of 3.3 times trailing operational EBITDA. Iridium amended its term loan so the Merger does not trigger change-of-control provisions. Net income also fell from US$22.0 million a year earlier, which indicates that subscriber growth has not yet translated into higher reported profit.

What Investors Should Watch

The remaining approvals include FCC consent to transfer Iridium’s licenses and other customary conditions, with closing targeted by mid-2027. Because part of the consideration is in Rocket Lab stock, the value Iridium holders ultimately receive could move with Rocket Lab’s share price within the collar’s limits. Investors may also watch the NTN Direct commercial launch, Aireon integration, and third-quarter results, which Iridium typically reports in late October; a date had not been announced. According to market data as of early October 2026, Iridium’s quarterly Dividend is US$0.15 per share, matching the June payment, though future payments before closing depend on the merger agreement and board decisions.

The FCC Consent and the Path to a Mid-2027 Close

With Shareholder approval secured and antitrust review complete, Iridium’s outlook now hinges largely on FCC clearance and the timing of a mid-2027 close. The underlying business continues to grow subscribers and service revenue, though profitability has softened and debt remains meaningful. Until the deal closes, Iridium sits in the S&P SmallCap 600 as a constituent in transition, with its value tied to the deal terms and Rocket Lab’s share price.